Wells Fargo on Oct. 16 forecast US September housing starts to fall 2.0% MoM to
a 1.25 mln annualized pace; the data are due next Tuesday. The bank said
mortgage rates rose above 7% at end-September, worsening purchase affordability,
and starts have fallen in four of the past five months. An NAHB survey showed
builders' expectations for future sales deteriorated and price cuts increased.
Multifamily construction is being weighed down by higher financing costs and
limited rent growth. A pullback in building permits is another reason Wells
Fargo expects September starts to decline.
