Housing Slump Takes Deepest Cut From US GDP Since End of 2007
Houses in Meridian, Idaho.
Photographer: Jeremy Erickson/BloombergThis article is for subscribers only.
The collapse in US home construction during the third quarter took its biggest chunk from gross domestic product in nearly 15 years as surging mortgage rates dealt a hammer blow to demand.
Residential investment plunged an annualized 26.4% during the period, marking the sixth-straight quarterly decline, government figures released Thursday showed. The slump subtracted a whopping 1.37 percentage points from GDP, the most since the final three months of 2007 and the start of the Great Recession.