Home builders across the US have been pouring more foundations, and erecting more homes than at any other time in the past 5 years. This could be a reinforcing sign that the US economy has been steadily recovering. Despite slightly higher mortgage interest rates than a few years ago, the demand for new homes across the country seems to be increasing slowly and steadily.
New Home Construction Hits 5 Year HighNot only has demand improved as of late, but the amount of people who are willing to buy and are also qualified must be improving too. The Southern and Midwestern states are seeing the highest rates of new home sales, which indicates that these areas are seeing more of a growth in employment and income. New people are moving to these regions, and some of those there already are looking for new places to call home.
One of the side effects of this small housing boom is that more construction workers gain employment, and more businesses receive an economic boost from the sale of materials for these homes. The cyclical effect is a sort of healthy economic stimulus that trickles through local economies among blue collar workers. There seems to be no shortage of workers available and willing to work when it comes to employing those in the field. This is still a sign that there is more work to be done to fully recover our economy, but we are heading in the right direction at the moment.
Despite mortgage interest rates and borrowing costs increasing, new home growth will most likely continue to grow. Mortgage rates are one of the ways that the banking system can earn income, which may one day lead to a return of “normal” interest rates on savings and bonds.
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New Home Construction Hits 5 Year High.