On Tuesday, the 19th of November 2019, data released from the US Commerce Department had revealed an upbeat illustration of the US housing market on October, a sector which had been scuffling less than two months earlier, as US homebuilding alongside building permits reported riant figures last month in the face of a multi-month low mortgage rates in the United States, while building permits for future home constructions climbed to a 12-months peak on October.
In point of fact, according to an upbeat orchestration portrayed by the US Commerce Department on Tuesday (November 19th), US housebuilding starts reported an upsurge of 3.8 per cent to a seasonally adjusted figure of 1.314 million on October, up from a sharp contraction of 1.266 million in September, while single-family home construction posted a rise for straight five months in a row.
Aside from that, Tuesday’s (November 19th) US Commerce Department data on US homebuilding had also reported an unprecedented hike in shares of under construction homebuilding companies, however had failed to rescue the United States’ largest home construction retailer Home Depot Inc., quarterly earnings of which had fallen short of analysts’ estimate and eventually had plagued its shares prices.
Nonetheless, citing a multi-month low homebuilding financing cost in the United States following three interest rate-cuts by the US Federal Reserve this year, a chief economist at MUFG in New York, Chris Rupkey said on Tuesday (November 19th) following reveal of US Commerce Department’s data, “It is cheaper than ever to finance the cost of a new home and home builders are sitting up and taking notice assuming that if they build it, buyers will come. There won’t be a recession if residential housing construction has anything to say about it. ”