US Housing Market Surges Unexpectedly
The number of US homes beginning construction unexpectedly surged in May by the most since 2016 and applications to build increased, suggesting residential construction is on track to help fuel economic growth—something Federal Reserve Chair Jerome Powell alluded to during last week’s rate decision meeting. Homebuilders are responding to limited inventory in the resale market, and—despite higher mortgage rates—have grown more upbeat as demand firms up, materials costs retreat and supply-chain pressures fade.
