Real Estate

Construction spending rose 0.8% in November

November’s spending is 3.4% above 2017's estimate of $1.26 trillion

The U.S. Census Bureau of the Department of Commerce announced that construction spending during November 2018 was estimated at a seasonally adjusted annual rate of $1.3 trillion, rising 0.8% from the revised October estimate of $1.29 trillion.

Notably, November’s spending is 3.4% above the November 2017 estimate of $1.26 trillion.

Spending on private construction was at a seasonally adjusted annual rate of $993.4 billion, 1.3% above the revised October estimate of $980.4 billion.

Of that, residential construction spending was at a seasonally adjusted annual rate of $524.5 billion in November, which is 3.5% above the revised October estimate of $542.2 billion.

Despite increases in construction spending, November’s Housing Market Index revealed affordability concerns weekend homebuilders faith in the market, according to the National Association of Home Builders and Wells Fargo.

“Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” NAHB Chairman Randy Noel said in statement regarding November's index.

That being said, homebuilder confidence has since strengthened in January, as the latest Housing Market Index indicates homebuilder confidence rose to 58 points.

Noel attributes January's boost to improvements made in the U.S. economy.

“The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” Noel said. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.”

Most Popular Articles

FHA, VA join Fannie, Freddie in relaxing some standards

With the coronavirus continuing to reshape the face of the country and the economy, the biggest players in the mortgage business are moving to try to make it easier to lend. Last week, it was Fannie and Freddie. Now, it’s the FHA and VA’s turn.

Mar 30, 2020 By

Latest Articles

AIME’s Anthony Casa on the mortgage industry’s most pressing topics

HousingWire CEO Clayton Collins sat down with Association of Independent Mortgage Experts Chairman Anthony Casa to discuss some of the most pressing issues pertaining to the housing industry as the coronavirus that causes COVID-19 continues to create uncertainty within the market. HW+ Premium Content

Apr 03, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please