The real estate market situation in the United States has always been a concern, and recently there have been many changes and trends in the construction of single family homes, reflecting the complex situation faced by the market. This will be elaborated in detail below.

1、 The decline in the construction of single family homes in the United States in October

（1） Specific data presentation

According to data released by the US Department of Commerce on Tuesday, the construction of single family homes, which account for a significant proportion of housing construction, saw a significant decline last month. According to the seasonally adjusted annualized rate, the number of single family housing starts in October decreased by 6.9% to 970000 households. After the data for September was revised upwards, it showed that the number of houses built increased from the previously announced 1.027 million to 1.042 million, indicating the significant decline in the number of single family homes built in October.

（2） Analysis of influencing factors

The factors that led to a significant decline in the construction of single family homes in October are multifaceted.

Firstly, in terms of natural factors, hurricanes Helen and Milton had a suppressive effect on related activities in the southern United States. The arrival of these hurricanes has disrupted the normal construction process in the area, making it difficult for construction projects to proceed as planned, thereby affecting the number of single family homes being built.

Secondly, at the economic level, the increase in mortgage interest rates has a significant impact on it. Despite a slight increase in construction permits, the rise in mortgage interest rates has led to higher borrowing costs for builders and homebuyers. This not only increases the pressure on homebuyers to purchase houses, leading to a suppression of potential housing demand, but also makes builders more cautious when carrying out new projects, increasing financial pressure and limiting the construction scale of single family homes, resulting in a significant decline in the number of constructions.

Furthermore, in terms of overall housing supply, the current supply of new housing in the United States is at a low level since 2008. The shortage of housing supply to some extent reflects the imbalance between supply and demand in the market, and further restricts the growth of the number of single family residential buildings constructed. Due to the tight housing supply, builders may face a series of problems such as insufficient raw material supply and rising labor costs, which are not conducive to the progress of single family residential construction projects.

2、 Relevant information on mortgage loan interest rates

（1） Changes in interest rate trends

As the Federal Reserve began cutting interest rates in September, mortgage rates initially decreased, which gave the market a glimmer of hope and seemed to ease the pressure of buying and building houses. However, the subsequent situation changed. Given the strong economic data in the United States and concerns that President elect Trump's policies, including tariffs on imported goods and large-scale deportation of immigrants, may reignite inflation, mortgage rates have erased their previous decline and returned to higher levels.

（2） Relation with treasury bond bond yield

The yield of the benchmark 10-year US treasury bond bond also showed significant changes during this period, having risen to the highest point in five and a half months, and remained at the same level in the follow-up. It is worth noting that the mortgage interest rate is highly consistent with the yield of 10-year treasury bond. This means that the fluctuation of treasury bond yield will directly affect the mortgage interest rate, and then have a chain reaction on the real estate market, affecting the purchase decision of buyers and the construction plan of builders.

3、 Confidence Index of Housing Builders

Although a survey released by the National Association of Home Builders on Monday showed that the confidence index of home builders rose to a seven month high in November, there are specific reasons behind this situation. The increase in confidence index this time is mainly due to builders' increasing belief that after the Republican Party gains all power in Washington, the regulatory pressure on the industry will be significantly reduced. That is to say, the expected improvement of the regulatory environment for the future industry by builders has boosted their confidence in the current situation, but this does not mean that the many practical problems facing the real estate market, such as the decline in construction quantity, insufficient housing supply, and high mortgage interest rates, have been solved.

The decline in the number of single family homes built in the United States in October and the combined impact of related market factors fully demonstrate the complex and severe situation currently faced by the US housing market. It is necessary to continue to monitor its subsequent development trend and changes in various factors in order to better grasp the direction of the US real estate market.