Economic news

US house building gains, while construction permits at their maximum since 2007

House building in the US grew to its maximum in a year last month, propelled by enlivening in the single-family housing units building, and it is expected to increase even more taking into account construction permits surging to record highs since 2007.

Today’s other report highlighted a hike in January’s prices on import, along with significant rise in prices of fuel and various other products, strengthening forecasts of inflation pick-up in 2018.

Housing starts climbed by 9.7% to a yearly rate adjusted for season equaling 1.326 mln units, according to the Commerce Department. It is the highest figure since October 2016, coming after an upped sales rate of 1.209 mln.

Construction permits leaped 7.4% to 1.396 mln units last month, a record high since June 2007. Tightening jobs market is ensuring demand growth for housing, though mortgage rates and real-estate prices rise could hamper the motion. Regardless of the lowest level of unemployment in 17 years standing at 4.1%, yearly wage growth has been less than 3%.

At the same time the yearly house price growth made up more than 6% last November. This week showed 4.38% rise for the 30-year fixed mortgage rate, the maximum since April 2014, whereas previous week’s level had been 4.32%, Freddie Mac company’s data says.


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