Construction permits for new homes rises to 12-year high

Construction permits for new homes rises to 12-year high

Construction permits for new homes rises to 12-year high
The volume of permits for new home construction climbed to its highest level since June 2007 as of last month. This is a sign that builders are shifting into high gear ahead of the expected high-demand summer home buying season. This latest information comes from the Commerce Department and The National Association of Realtors.

The January figures represent a 6.4 percent increase over December and 9.2 percent higher than the same month last year. Based on the strong construction reports seen so far this year, economists at Goldman Sachs are predicting a 1.5 percent increase in the GDP this year.

An increase in construction is desperately needed as a chronic shortage of homes as led to an imbalance of supply and demand that is impacting affordability for buyers.

Meanwhile, no-point conforming 30-year fixed mortgage rates are averaging 3.5 percent and 15-year rates are near 3.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.