U.S. housing starts plummeted to a four-year low, while mortgage rates, despite a slight drop, remained high, and home prices reached new record levels. This combination of factors is expected to negatively impact small screw orders from the U.S. market. According to the latest data from the U.S. Department of Commerce, housing starts in July fell by 6.8% to an annual rate of 1.2 million units, the lowest since May 2020, and were below market expectations. Building permits, a key indicator of future construction activity, also decreased by 4% to an annual rate of 1.4 million units.

Meanwhile, the average rate for a 30-year fixed mortgage dropped to 6.54%, down from around 7% in early July, but it remains relatively high. The median sales price of existing homes in June reached a record US$426,900, which has reached a record high for the second consecutive month. Despite these challenges, the possibility of a Federal Reserve rate cut in September could improve housing demand, potentially boosting small screw orders from the U.S. market.