Home building climbs to highest level in 11 years

Home building climbs to highest level in 11 years

The Commerce Department announced last week that home building in the U.S. increased in August to its highest level since June 2007. Home construction has lagged behind demand for new homes for several years resulting in skyrocketing home prices. This latest data is a positive mark on the overall housing market which has been shrouded with uncertainty as more economists speculate a recession may be on the horizon.

Housing starts rose 12.3 percent last month to a seasonally adjusted annual rate of 1.364 million units. This far surpasses the 4.1 percent increase economists surveyed by The Wall Street Journal had predicted for August.

Low mortgage rates are likely to sustain the high demand levels throughout the winter months and well into next year. Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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.