Bolstered by low mortgage rates and increasing sales, builder confidence is cruising. The good news is that the enthusiasm is more than a feeling: both permits and housing starts are increasing, indicating a growing momentum in the housing market.
Total housing starts increased 3.8 percent in October to a seasonally adjusted annual rate of 1.31 million units, according to a report from the U.S. Housing and Urban Development and Commerce Department.
The October reading of 1.31 million starts is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts increased 2% to 936,000 units. The multifamily sector, which includes apartment buildings and condos, increased 8.6% to a 378,000 pace.
“Home builders are seeing more building opportunities as market conditions remain solid,” said NAHB Chairman Greg Ugalde. “Builder sentiment remains strong and we are seeing an uptick in buyer traffic.”