U.S. homebuilding jumped 17.3% in June to a seasonally adjusted rate of 1.186 million, according to www.cnbc.com. The increase was in line with economists’ expectations; however, it still remains 4% below 2019’s pace.
Applications for building permits, a good indication of future activity, rose 2.1% to 1.24 million units.
Single-family starts grew 17.2% to 831,000 units, and multifamily starts increased 17% to a rate of 350,000 units.
Homebuilders had been hopeful housing would recover as the U.S. reopens with the market experiencing the lowest mortgage rates in 50 years. However, it is unclear whether the rebound is sustainable because infections have spiked as people have been increasingly venturing outside of their homes.
