In August, U.S. housing starts rebounded by 9.6% to an annualized rate of 1.36 million, the fastest pace since April, following a sharp drop in July. The rise was driven primarily by a 16% surge in single-family home construction, while multifamily projects declined. Building permits, an indicator of future construction, also increased by 5%. Despite improved demand prospects tied to falling mortgage rates, builders remain cautious due to a high inventory of unsold homes. Although homebuilding contributed to economic growth earlier this year, it's expected to reduce third-quarter GDP by 0.3 percentage points (Bloomberg).