Homebuilders up construction spending

Homebuilders up construction spending

Homebuilders up construction spending
As homebuilder confidence remains high, the amount they are spending on the construction of new homes is increasing. Contruction outlays totaled $1.328 trillion at a seasonally adjusted annual rate as of December. While this is a small retreat from the month prior, it represents a five percent increase over the prior year. This latest data comes from the U.S. Census Bureau analyzed by HousingWire.

The increase in spending correlates to an increase in confidence levels among the nation’s homebuilders. The Housing Market Index from the National Association of Home Builders and Wells Fargo shows confidence levels at their highest point since June 1999.

This latest information may a response to an increase in buyer traffic and demand for housing continues to grow.

Meanwhile, conforming no-point 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.