The rate at which new homes are being built in the U.S. surged in October to the fastest pace in months. According to new data from the Department of Commerce, residential stated increased 4.9 percent last month to 1.53 million units on an annualized basis. This is the fastest pace recorded since February before the pandemic took hold in the U.S.
A sharp increase in Americans working from home has led to an increase in demand for new construction. When coupled with record low mortgage rates, the supply of homes for sale on the market has fallen far behind putting pressure on builders to bring new properties on line faster.
In attempt to catch up with this record demand, starts of single-family homes are currently at their highest levels in over a decade as construction companies work to capitalize on the sellers’ market.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 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.