US homebuilding bounced back in September, after dropping in August to the lowest levels since 2020 as mortgage rates climbed.

Housing starts, a measure of new home construction, jumped 7% above the revised August estimate. Starts rose to a seasonally adjusted annual rate of 1.358 million last month, falling short of expectations of 1.38 million, according to data released Wednesday by the Census Bureau.

The number of units started was 7.2% lower than a year ago.

Single‐family housing starts, which account for most of the construction, rose 3.2% in September from the revised August figure, at a seasonally adjusted annual rate of 963,000.

Building permits dropped in September, however, falling 4.4% from August’s revised number to a seasonally adjusted annual rate of 1.473 million.

Permits were 7.2% lower than a year ago.

This story is developing and will be updated.