Construction of new homes rose in October to 1.314 million on an annualized rate. Permits for new homes rose sharply to 1.461 million, the highest rate since 2007 before the housing bubble crashed. Permits increased across every region with the Northeast posting the largest monthly increase of 19.5%.
Home builder’s sentiment appears to be improving as the index released by the National Association of Home Builders hit a 20-month high. Mortgage rates falling certainly has some impact and it appears there is less concern about the overall economy.
Housing is a very important part of our economy, and if new homes are being constructed then that bodes well for an improving economy within the next few months.