Housing Demand Remains Strong but Labor Market Lags

Home building has been an undisputed bright spot for the economy as the recovery continues. New home sales are outpacing construction. In fact, recent Census data indicate that August new home sales of homes that have not started construction are 69% higher than a year ago. The ongoing shift to lower-density markets, as well as historically low interest rates, are further supporting housing demand. Data from the Mortgage Bankers Association finds that for the week ending Oct. 2, applications for purchase