The Nation’s Housing Construction Sees an Increase in November 2019

The Commerce Department reported a rise in the construction of new homes this November. Building permits were at its highest level in 12 years which made both findings good signs for the housing market.

According to the data released, there was a 3.2% increase in started construction between October and November. Building permits saw an increase of 1.4% totaling a seasonally adjusted rate of 1.48 million. Construction on single-family homes rose 2.4% and construction of new apartments went up 4.9%.

To also aid in the housing market up-tick the Federal Reserve cut its policy rate several times this year. The cut allowed a drop in mortgage rates. The 30-year rate is a full percent lower than reported just a year ago.

There is also a rise in builder confidence. The National Association of Home Builders released data showing a jump in builders’ sentiment to the highest level in two decades. The report showed a jump from 71 in November to 76 in December.

The catalysts for the confidence is due to the decline in mortgage rates, a low supply of existing homes and a strong labor market.

The NAHB reported the increase in housing starts for each region and a decrease for others. In the South there was a gain of 10.3%, in the West a 1.4% gain. The fall was in the Midwest at 15.3% and the Northeast at 3.7%.

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