The 30-year fixed mortgage rate fell to an average of 4.28 percent last week, its lowest rate in more than a year, compared with 4.31 the previous week, according to data from the latest year. Mortgage Finance Agency Freddie Mac. The inflation of real estate prices also slows down.
Nevertheless, homebuilders remain limited in their ability to build more homes for the lower segment of the market. A survey last week showed that homebuilders' confidence was stable in March, with builders still complaining of a shortage of skilled labor, land restrictions and zoning restrictions in their homes. many large metropolitan areas.
Investment in residential construction shrank 0.2% in 2018, the weakest performance since 2010.
Single-family home construction, which accounts for the largest share of the housing market, fell 17.0% in February to 805,000 units, its lowest level since May 2017. The decline in percentage of single-family home construction is the largest since February 2015.
Single-family home construction fell in all four regions last month. Building permits for single-family homes remained unchanged in February, at a rate of 821,000. These permits are now leading housing starts, suggesting a rebound in single-family construction in the coming months.
Starts in the volatile multi-family housing segment jumped 17.8% to a rate of 357,000 units in February. Building permits for multi-family dwellings fell 4.2% to 475,000 units last month.