Home Building Rebound in February

SOURCE www.breitbart.com
Home building bounced back sharply in February, with residential housing starts rising 10.7%. The rise in mortgage rates has pushed demand into the new home market, boosting home builders. Building permits also increased to a 1.52 million rate, indicating a positive outlook for the housing market.

Key Points

  • The rebound in home building activity in February indicates economic strength.
  • The positive sentiment in the home-building sector may influence the Federal Reserve's interest rate decisions.

Pros

  • Residential housing starts rose 10.7% in February, the largest increase since May of last year.
  • Construction on new homes was at a 1.52 million annualized pace, exceeding Wall Street forecasts.
  • Building permits rose to a 1.52 million rate, the fastest since August, indicating a positive outlook for the housing market.
  • Single-family home starts rose 11.6% in February, and apartment construction rose 8.6%.

Cons

  • Rise in mortgage rates has kept many homes off the market as owners are reluctant to give up their current home loans.