FILE PHOTO: Clothes hang outside to dry behind an apartment as a buzzard flies during the spread of the coronavirus disease in West Belle Glade, Florida, February 9, 2021. REUTERS/Shannon Stapleton
Federal Reserve officials, wrapping up a two-day policy meeting on Wednesday, are likely to ignore the weather distortions and maintain their focus on underlying economic strength, rising inflation and a steadily healing labor market. U.S. stocks were trading lower. The dollar was steady against a basket of currencies. U.S. Treasury yields were higher.The year-long COVID-19 pandemic has shifted demand towards bigger and more expensive houses as millions of Americans continue to work and remote schooling remains in place.
A separate report from the Mortgage Bankers Association on Wednesday showed a moderate increase in applications for loans to purchase a home last week. Though mortgage rates remain low by historical standards, they are contributing to the rising costs of homeownership, especially for first-time buyers.
With the supply of previously owned homes at record low levels, builders are likely to continue breaking more ground, though houses could become more expensive. Starts for the volatile multi-family segment plunged 15.0% to a pace of 381,000 units. Building permits for multi-family housing projects declined 12.5% to a pace of 539,000 units.