On Tuesday, the US Commerce Department said in a statement that US home constructions rose by 1.9 per cent last month after having faltered as much as 6.7 per cent in August, while homebuilding remains one of the bright spots in an uncertain US economy.
In point of fact, Tuesday’s Commerce Department data came forth as the latest flashpoint in an all-time low long-term mortgage rates as the US mortgage buyer Freddie Mac had reported a record low 30-year fixed home loans at 2.81 per cent last week.
Nonetheless, according to US Commerce Department, last month’s gain in US home construction that followed a 6.7 per cent surprise decline in August, had lifted home construction to a seasonally adjusted annualized rate of 1.42 million units.
US housing market continues to rebound amid all-time low mortgage rates
Apart from that, while an ongoing global-scale pandemic outbreak had forced the US Federal Reserve to hold on to its near-zero benchmark borrowing rate at least until late-2021, housing market appears to be staging a robust rebound with a solid uptick in sales of both new and existing homes in the United States.
Besides, bolstering views that the US housing market could play a fundamental role in the United States’ economic recovery, applications for home building permits, had experienced an upsurge of 5.2 per cent to 1.55 million units last month, suggested analysts followed by the reveal of Commerce Department’s housing data.
Meanwhile, as an Associated Press economists’ poll was quoted saying that US home building would likely to thrive over the coming months amid a rush towards the suburbs and countryside following a pandemic resurgence in the densely populated US cities and a stubborn rise in work-at-home employees, an analyst at Oxford Economics, Nancy Vanden said, “Strong demand, low inventory and a record level of homebuilder confidence continue to support new home construction”.
Latest leg of upbeat US home construction data comes over the heels of a Monday statement from the National Association of Homebuilders that said the US builders’ confidence had spiked to a record high of 85 this month, up from a reading of 83 registered in September.