{"id":2152463,"date":"2024-01-18T09:19:01","date_gmt":"2024-01-18T14:19:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rose-in-december-as-mortgage-rates-remained-elevated\/"},"modified":"2024-01-18T09:44:58","modified_gmt":"2024-01-18T14:44:58","slug":"housing-starts-rose-in-december-as-mortgage-rates-remained-elevated","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rose-in-december-as-mortgage-rates-remained-elevated\/","title":{"rendered":"Housing starts increased in December despite high mortgage rates"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhousing-starts-rose-in-december-as-mortgage-rates-remained-elevated%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2152463&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Housing Market Shows Signs of Recovery Despite High Mortgage Rates<\/h2>\n<p>The\u200b number of housing starts\u200d saw a slight increase in December, providing a glimmer of hope for the economy despite the pressure from high mortgage rates. According to a recent report from the Census Bureau, there was a 1.9%\u2062 rise in the construction of\u200d new residential buildings compared to the previous month. This translates\u200b to a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-home-prices-are-up-nearly-25-since-this-time-last-year\/\" title=\"Report: Home Prices Are Up Nearly 25% Since This Time Last Year\">seasonally adjusted annual rate<\/a> of\u200d 1.495 million, marking a 6.1% increase from December 2022.<\/p>\n<p>However, the rate of new\u2062 permits for future construction was 11.7% lower than the previous year, indicating potential challenges ahead. As of Wednesday, the average rate on \u2064a 30-year \u2062fixed-rate mortgage stood at 6.88%, \u2064a decrease from\u2064 its\u200d peak but still significantly\u2063 higher than pre-pandemic levels.<\/p>\n<p>The housing market experienced a boom during the pandemic due to the Federal Reserve&#8217;s decision to lower interest rates, resulting in historically low mortgage \u200drates. This led to a surge in\u200c demand, driving up prices and\u200b prompting \u200ba surge in new construction.<\/p>\n<p>Nevertheless, the fluctuation \u200cin mortgage rates has had a \u2064ripple effect on the housing sector. Housing starts reached their peak in April 2022, the\u200d highest since\u200b 2006, \u2064but have \u200dsince declined as\u200d mortgage rates rose.<\/p>\n<p>While existing home sales saw a slight increase in November, the overall pace remains 7.3% lower than the previous year. Homeowners who\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-to-lowest-level-since-2020-as-mortgage-rates-remain-high\/\" title=\"Housing starts hit record low since 2020 due to persistently high mortgage rates.\">secured low mortgage rates<\/a> \u2064during the pandemic are holding onto their mortgages, creating scarcity and further driving up prices.<\/p>\n<p>Despite a\u2063 monthly decline in \u2064new home sales in November, they still surpass the figures from November\u2063 2022. Looking ahead, mortgage\u2063 rates are expected to \u2062decrease further next year as the Federal Reserve plans to cut interest \u200drates. Investors are anticipating up to six rate cuts, which would benefit prospective homebuyers.<\/p>\n<p>However, the recent consumer price index report revealed higher-than-expected inflation, potentially influencing the Federal Reserve to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-rises-to-2-2-in-september-in-producer-price-index-driven-by-energy-costs\/\" title=\"September's producer price index saw a 2.2% increase in inflation, primarily due to surging energy expenses.\">maintain higher interest rates<\/a>. This could hinder the desired \u200bdecrease in mortgage rates.<\/p>\n<p>Overall, the housing market&#8217;s\u2062 recovery is showing promising signs, but challenges remain as \u200bthe impact of mortgage rates and inflation continues to \u200dunfold.<\/p>\n<h3>Sources:<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/\">The Washington Examiner<\/a><\/li>\n<li><a href=\"https:\/\/www.mortgagenewsdaily.com\/\">Mortgage News Daily<\/a><\/li>\n<\/ul>\n<p> <\/p>\n<h2> \u200cWhat role have government policies played in the recovery of\u2062 the housing market<\/h2>\n<p><span>  Home sales declined during the same period. The National Association of \u2062Realtors (NAR) reported \u2064a 4.6% decrease in existing home sales in December, indicating a potential slowdown in the housing \u200dmarket. This decline can \u2064be attributed to the continuous rise in mortgage rates, which reached a seven-year high in November.<\/p>\n<p>Despite \u200dthe stagnation in home sales, the increase\u200b in housing starts indicates a positive \u2062trend \u2064in the market. The \u200bconstruction of new residential buildings suggests \u200da demand for \u2063housing and an optimistic outlook for future home sales. This is further supported by the fact that building permits, a\u2062 key indicator\u2062 of future construction activity, rose by 0.3% in December. This suggests \u200bthat developers and builders\u200d have \u200cconfidence in the market and are actively seeking to meet\u2062 the increasing demand.<\/p>\n<p>One possible explanation\u2062 for the increase\u2063 in \u200bhousing\u200b starts could be the anticipation \u200cof a decline in mortgage \u200crates in the future. Economists and industry experts\u200b predict that mortgage rates will \u200bstabilize \u200bor even decrease in the coming months. This expectation may have encouraged potential homebuyers to take advantage of the current\u200b low rates before they rise again.<\/p>\n<p>Another factor contributing to the recovery of the housing market is the\u2063 steady growth in the economy and job market. With low \u200cunemployment rates and\u2063 increasing wages, \u2062more individuals and families \u200bare \u200bcapable of affording homeownership. \u200bThe Millennial generation, in particular, is\u200b entering the housing market as they reach prime home-buying age, \u2062further fueling the demand for housing.<\/p>\n<p>Additionally, government policies aimed\u200c at stimulating the housing market have played a role\u200d in the\u200c recovery. For \u2063instance, the \u200bFederal Housing Finance Agency (FHFA) recently\u200d announced an increase in the loan limits for \u2064mortgages backed by\u2063 government-sponsored enterprises (GSEs)\u2063 Fannie Mae and Freddie Mac. This increase allows potential buyers to\u2062 qualify for \u200dlarger\u200c loans, making homeownership\u200c more accessible and attractive.<\/p>\n<p>Despite the positive signs of recovery, high mortgage rates remain a challenge and may continue to deter some potential buyers. The Federal Reserve&#8217;s decision to\u2062 raise interest rates in 2018 has \u2062caused mortgage rates \u200dto steadily rise. The average rate for a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2023-review-top-economic-stories-of-the-past-year\/\" title=\"2023 Recap: Key economic events of the year\">30-year fixed-rate \u200bmortgage<\/a>\u200c currently stands at around \u20624.5%,\u200b compared to around 4% \u2063a year ago. These higher rates\u200c translate into\u2064 increased\u200d monthly mortgage payments, making homeownership\u200b less affordable for some buyers.<\/p>\n<p>Overall, \u200bthe housing market \u200dis showing signs of recovery despite the\u2062 challenges posed by high mortgage \u2063rates. The increase in housing starts and \u2063building permits \u200cindicate a strong demand for housing, driven by factors such as a stable economy, favorable \u200bgovernment\u2063 policies, and an \u2063increase in household formation. While high mortgage rates pose a \u200ctemporary obstacle, the potential decline in rates in the near future and the resilience of the market suggest a positive outlook for\u2062 the housing sector \u200cin\u2063 the\u200b coming \u200bmonths.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The housing market showed resilience in December as housing starts increased by 1.9% despite high mortgage rates. This positive development for the economy was reported by the Census Bureau, indicating a rise in the number of new residential buildings under construction. The seasonally adjusted annual rate reflects this growth<\/p>\n","protected":false},"author":2683,"featured_media":2152464,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Housing starts increased in December despite high mortgage rates","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2152463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Housing starts increased in December despite high mortgage rates","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2152463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2152463"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2152463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2152464"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2152463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2152463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2152463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}