Falling mortgage rates pushed homebuilder sentiment higher in November, leading developers to break ground on new construction at the fastesꦆt pace in six months.

New Census Bureau data shows housing starts in November came in at an adjusted annual rate of 1.56 million, more than the 1.36 million economists were expecting. November’s results were nearly 15% higher than October’s adjusted reading of 1.36 million, and 9% above housing starts at the same time last year. For just single-family homes, housing starts were 18% better than the previous month. It’s the largest number of housing starts since May.

Building permits, an indicator of future construction, came in lower than projected at 1.46 million, down from October’s revised figure of♊ 1.5 million. 

The improved housing starts number shows builders are racing to meet demand for new housing, with high borrowing costs having little impac𓂃t on construction activity, said LPL Financial Chief Economist Jeffrey Roach.

“We are seeing strength in both single-family and multi-family activity as homebuilders are taking advantage of the low supply of existing homes on the market,” Roach said. “Most of the housing starts were in the South as✅ hybrid work continues to be a boon for households seeking a lower ꦦcost of living.”

The housing starts data is another positive economic sign for a housing market that has been under pressure from high mortgage rates and plagued by affordability issues. 澳洲幸运5开奖号码历史查询:Home ဣbuilder sentiment rose in December, the first time in four months, while the Mortgage Bankers Association projected a 6% increase in existing home sales and a 10% jump in new home sales in t🙈he next year. 

The improved outlook comes after Federal Reserve Chair Jerome Powell signaled that the central bank could be done raising interest rates. The Fed's campaign against inflation helped drive mortgage rates to nearly 8% this fall, a 澳洲幸运5开奖号码历史查询:more than two-decade high.