The Census Bureau reported Friday morning that single-family starts fell to a 591,000 seasonally adjusted annual rate in July from a 604,000 rate in June.
The June rate was revised upward by 13,000 units.
On the multifamily side, starts rebounded 25% month-0ver-month to a 290,000 SAAR.
Construction of single-family homes hit their highest level this year at a 652,000 annual rate in February. But starts have hovered around a 600,000 rate for the past four months.
Economists at Wells Fargo Securities attribute the “disappointing” housing data on “extremely wet weather in the South.”
Friday's report shows that single-family starts fell 4.6% in the South month-over-month and are up just 12.5% from July 2012. Meanwhile, starts are up 33% in the Northeast year-over-year, 25% in the Midwest and 9% in the West.
Overall, single-family starts are up 21% from July 2012.