U.S. single-family homebuilding and permits for future construction fell sharply in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter.

Permits for new housing constructions edged up by 4,000 to 1,397,000 during the month, amid a subdued housing market.

U.S. housing starts rose in June from a downtrodden May but remained slightly below last year’s levels, with weakness in single-family starts and permits.

New home construction ticked up in June after hitting a five-year low in May — the lowest level since the thick of the coronavirus pandemic. Private home building came in at a seasonally adjusted annual rate of 1.