Housing Starts Rebound in February to the Fastest Pace Since 2006
A “lack of resale inventory continues to support housing demand despite higher interest rates,” said Robert Dietz, NAHB's chief economist.
March 17, 2022 2 MIN
A “lack of resale inventory continues to support housing demand despite higher interest rates,” said Robert Dietz, NAHB's chief economist.
The Fed's tightening of monetary policy sent mortgage rates soaring to a three-year high this week, making it tougher for families to buy homes.
Homebuilders are facing several challenges, including construction costs rising 20% over the past 12 months, said Robert Dietz, NAHB’s chief economist.
The share of respondents who said mortgage rates will rise over the next year increased to a record high of 67%, according to a Fannie Mae report.
About a quarter of respondents cited the Russian invasion of Ukraine when asked about their economic outlook, the survey said.
The increase came as the Fed concluded a two-year program buying Treasuries and mortgage bonds to prevent a credit crunch during the pandemic.
The CPI data bolsters the Federal Reserve’s plan to begin raising its benchmark rate next week for the first time in three years.
Homeowners with mortgages gained an average of $55,300 in equity, CoreLogic said in a report on Thursday.
The U.S.housing market likely could withstand a recession without a downturn in home prices, according to Jaret Seiberg, a housing policy analyst for Cowen Washington Research Group.
Employers added 678,000 workers to their payrolls in February, smashing economists' estimates and sending the unemployment rate to a two-year low.
