US housing market stabilizing as single-family homebuilding, permits surge

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U.S. single-family homebuilding increased for a second straight month in March, while permits for future construction surged, offering some glimmers of hope for the depressed housing market ahead of the busy spring selling season.

The improvement in the single-family housing market segment, which was reported by the Commerce Department on Tuesday, likely reflected buyers taking advantage of a retreat in mortgage rates. A survey on Monday showed falling mortgage rates and tight supply of previously owned houses were supporting the new home market.

Single-family homebuilding increased 4.4% in the Northeast and soared 23.6% in the Midwest. It advanced 4.8% in the densely populated South, but plunged 16.0% in the West. Single-family housing starts dropped 27.7% on a year-on-year basis in March. Those rates have decreased in tandem with U.S. Treasury yields on hopes that the Fed would not continue raising borrowing costs beyond next month amid signs that the economy was slowing.

Stocks on Wall Street were trading lower. The dollar fell against a basket of currencies. U.S. Treasury prices rose.Starts for housing projects with five units or more decreased 6.7% to a rate of 542,000 units. Multi-family housing construction remains underpinned by demand for rental accommodation. But economists see limited scope for further gains, noting an increase in empty apartments. The inventory of multi-family housing under construction is at record highs.

Permits for housing projects with five units or more plummeted 24.3% to a rate of 543,000 units. Overall, building permits dropped 8.8% to a rate of 1.413 million units.

 

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Rates are still 3 times what they was a few years ago...

All of the mobile home flips ie $20k mobile home sells for $100k which they pull out and bring a manufactured home in place of it and sell it for $375,k on RENTED land. Don't those increases thrown statistics off kilter?

The price are getting low but mortgage rates are getting up

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