Home construction surged last month as mortgage rates fell.
Housing starts, aka construction on new homes, jumped by 14.8% in November compared to the previous month.
Single-family homes led the market:
“The number of new single-family homes under construction was up more than 40% compared to a year ago,” said the chief economist at Bright MLS.
From Briefs Media, LLC aka Market Briefs
Breakdown: Last month, lower mortgage rates increased the affordability of new homes. Builders beefed up construction to ensure they have enough supply to meet the pent-up demand.
Despite a decline in interest rates, mortgage demand showed little enthusiasm.
However, homeowners called up their refinancing guy. Last week, refinance demand was 18% higher than the same week one year ago.
Prediction: The Mortgage Bankers Association (MBA) also predicted positive news for the future of the housing market.
- Despite a “mild recession” in the first half of next year, the MBA thinks that a drop in inflation alongside potential rate cuts will push 30-year fixed mortgage rates to their lowest levels in a long time.