US builders boost single-family home construction
By: The Associated Press (Las Vegas Sun) September 2013
U.S. builders started work in August on the most single-family homes in six months and requested permits to build even more in future months. The figures suggest housing remains a driver of economic growth despite higher mortgage rates.
Builders increased construction of single-family homes 7 percent last month to a seasonally adjusted annual rate of 628,000, the Commerce Department said Wednesday. That’s the fastest rate since February. And they sought 627,000 permits for future single-family homes, 3 percent more than July and the best pace since May 2008.
Overall, builders broke ground last month on houses and apartments at an annual rate of 891,000. That’s up from a rate of 883,000 the previous month. The gain in single-family homes was offset by a decline in volatile demand for apartments.
Total permits fell to a rate of 918,000 from 954,000 in July, also because of a decline in apartments.
The longer-term trend is also positive: housing starts are 19 percent higher than a year ago.
The housing market has been recovering steadily over the past year, helped by lower mortgage rates and steady job growth. The gains have contributed to economic growth at a time when consumers and businesses have spent more cautiously.
But mortgage rates have risen more than a full percentage point since early May. Some economists say higher rates may be starting to slow the recovery’s momentum. In July, new-home sales plummeted to the lowest level in nine months.
Mortgage rates could rise even further if the Federal Reserve decides later Wednesday to slow its $85 billion a month bond purchase program. Most economists expect the Fed will announce that it will reduce its purchases by $10 billion. The bond purchases have kept long-term interest rates low.
The average fixed rate on a 30-year mortgage was 4.57 percent last week. That’s near the highest level in two years. Still, rates remain low by historical standards. And most economists expect the housing recovery to withstand the increase in borrowing costs.
Homebuilder confidence remained at its highest level in nearly eight years in September, according to a survey by the National Association of Home Builders. But builders are starting to worry that sales may slow in the coming months if rates keep rising, the survey found.
Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008