After months of uncertainty in the housing market, there may be light at the end of the tunnel. Housing starts and permits for future construction are up due to low mortgage rates, with permits at an over 12-year high. Single-family construction grew for the fifth straight month, and builder confidence is the highest it has been all year.
U.S. homebuilding rebounded in October and permits for future home construction jumped to a more than 12-year high, pointing to strength in the housing market amid lower mortgage rates.
The report from the Commerce Department on Tuesday also showed an increase in home completions and the stock of homes under construction, which could help to ease a supply squeeze that has plagued the housing market.
Though housing accounts for a fraction of gross domestic product, it has a bigger economic footprint. The surge in housing activity at the start of the fourth quarter suggested some support for the economy, which is slowing amid cooling consumer spending and persistent weakness in business investment and manufacturing.
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