US home construction rebounds a strong 11.8% in November
NAHB Chief Economist Robert Dietz said even though 2021 single-family starts are expected to finish the year 24% higher than the pre-COVID levels of 2019, “we expect higher interest rates in 2022 will put a damper on housing affordability.” On Wednesday, the Federal Reserve announced that it will reduce its monthly bond purchases — which are intended to lower long-term rates — at twice the pace it had previously set. The Commerce Department reported last month that the median price of a new home, the point where half the homes sold for more and half for less, rose to a record $407,700 in October, up nearly 18% from a year earlier. The increase in home prices in the past year has decelerated a bit recently, but with supply short and rates expected to rise, it’s not certain that more buyers will jump in the market.
