U.S. Construction Spending Rises 0.4% in April, Beating Expectations on Single-Family Homebuilding

U.S. construction spending rose 0.4% in April, surpassing the 0.2% forecast and buoyed by single-family homebuilding, the Commerce Department reported Monday (June 1, 2026). However, rising mortgage rates driven by the U.S.-Israeli war with Iran continued to threaten the housing market. Private residential spending climbed 0.8%, with single-family projects up 1.4%, while multi-family slipped 0.3%. The popular 30-year fixed mortgage rate averaged 6.53% last week, a nine-month high, up from 5.98% in late February when the conflict began, as Freddie Mac and Fannie Mae expanded purchases of mortgage-backed securities. Private nonresidential investment fell 0.2%, contracting for nine straight quarters despite a surge in data center construction for artificial intelligence. Public construction spending increased 0.4%, with federal outlays jumping 4.8%, likely tied to detention center building amid an immigration crackdown.