Recent reports show that U.S. housing starts were up 22.7% in November, reaching its highest level in nearly six years. Data shows the housing industry adjusting to the rise in mortgage rates, steady job-market gains, and rising stock and housing wealth, which can boost the confidence levels of prospective buyers and may account for this new momentum.
“The recovery trend has resumed,” said Alan Levenson, chief economist at T. Rowe Price Associates.
A stronger housing market lends itself to growth in other areas as well––including job creation, demand for building materials, and an increase in the sales of home goods––making these latest reports good news for the wider economy.
This article can be found in its original form at Wall Street Journal.