The US Commerce Department’s data on US homebuilding came as a beacon of hope for the US economy which had entered into a technical recession on February this year, as the US homebuilding had surged by the most in four years last month mostly due to a rise of demand for housing in the suburbs and rural areas.
In point of fact, latest upbeat data from the US Commerce Department came forth as millions of American citizens were allowed to work from home amid a steady spike in pandemic cases, which in effect had seen millions of Americans departing the densely populated large cities.
However, other economic data released on Friday had signalled further glooms ahead for the US economy, as a re-emergence of the pandemic outbreak across the United States had rubbed out consumer confidence on mid-July, eventually threatening an earlier-than-anticipated economic recovery despite an upbeat consumer spending and retail sales last month.
Apart from that, the US Commerce Department housing data for June released earlier on Friday came forth a day after the Freddie Mac had revealed that the US 30-year fixed mortgage rate had dwindled to its lowest reading of 2.98 per cent on record last week, while the record-low mortgage rate had also aided US housing industry to gain further traction.
US housebuilding hoists up as millions leaving large cities
In tandem, according to the US Housing data for June released earlier on Friday by the US Commerce Department, US Housing starts had skyrocketed 17.3 per cent to a seasonally adjusted 1.186 million units last month, remarking the index’s biggest percentage since the October of 2016, nonetheless, still the US homebuilding had been 24.3 per cent below since the pandemic-led crackdown in March.
Meanwhile, adding the growing housebuilding numbers in the suburbs and rural places had been justifying that the people were leaving the large cities, a corporate economist at Navy Federal Credit Union in Vienna, Virginia, Robert Frick said following the release of US housing data for June, “Home building is coming back at a steady, if unspectacular pace.
The numbers also verify that many people are leaving, or planning to leave, big cities as telecommuting becomes the norm for many businesses”.