Home construction experiences uptick, still falls short

Home construction experiences uptick, still falls short

Home construction experiences uptick, still falls short
Home builders are trying to up their game to keep up with the frenzied demand for new places to live but according to new data, this attempt to catch up is still woefully inadequate. A National Association of Home Builders analysis of Census Bureau data shows that total private residential construction spending climbed one percent in April on a monthly basis.

Although the annual rate of construction spending in April of $729.2 billion was 29.7 percent higher than a year ago, it is likely to have little impact on the shortage of homes in the U.S.

A variety of factors are preventing home builders from picking up the pace of construction including a national labor shortage, rising lumber costs and scarcity in land to be developed.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.

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