Housing Industry Update
January 3, 2009 by mannop125
Filed under Construction News
We realize we have all different types of power tool enthusiasts that visit our site. We also realize that a good percentage are professional power tool users predominately tied to the housing construction industry. Keeping this in mind, we are starting up a brief overview of the housing industry with the hope that it keeps our tool users informed.
It is fairly obvious from the most recent statistics that the housing market decline is still in force. Housing activity continues to be illustrating tough economic times right now. In November, housing starts declined to the lowest level on record. They were down 47% from this time last year. The declines in construction were in both single-family and multi-family units, which suggests the retreat in housing starts is widespread and not localized to a single demographic.
Residential permits approvals were also weak, coming in at the lowest level since the 1960’s. They were also broad based, with both single and multi-family units being affected.
It looks like the correction in the housing market is still in full force. There is some bright news that suggests that some demand may start coming down the road. The Fed’s announcement that it will consider buying long term treasury bonds was done to try to lower long term yields, off of which fixed mortgage rates are set. The strategy appears to be working, as the average 30 year fixed mortgage rate has fallen to a low of 5.17% Obviously the key here is to free up borrowers to start a long over-needed rebound in housing.
Hopefully the worst may be behind us, so keep your tools lubed up!!
Related Articles
- Construction Industry To Rebound In 2010
- Lumber Demand to Take a Dip
- New Home Sales Drop To Lowest Level On Record
- U. S. Housing Starts Surge
- January Construction Statistics
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I like the new addtion to the website, the outlook updates. I am always trying to find more sources and this helps.