Tends To Improve US Housing Market
Residential construction increased 41.9 percent compared to the same period of 2011

Recent figures are boosting demand, helped by the historically low mortgage rates


The U.S. housing market remains today in the sights of the experts as predicted, that this year, for the first time since 2005, home construction will contribute to GDP.

The Commerce Department reported that housing construction starts in October rose 3.6 percent, the fastest pace in four years.

Residential construction increased 41.9 percent compared to the same period of 2011.

However, permits for housing fell 2.7 points in the tenth month of the year, with declines primarily in multifamily segment.

The bank noted that recent figures, especially marked by rising sales, are boosting demand helped by the historically low mortgage rates.

However, analysts said the market is still beaten by the high level of unemployment and the stricter requirements of banks to grant loans.

The bursting of housing bubble sent the economy into its worst recession in over half a century, is one of the main troubles, Americans are facing.

Therefore, the weight, experts stress, could have increased the activity in the development of economy.

The September announcement of the U.S. Federal Reserve that it will purchase 40 billion dollars each month in mortgage securities to help boosting the recovery that could reduce interest rates further and stimulate demand for homes.

It must also be considered that market support is an outstanding issue for the government, making it necessary rescue program to continue supporting owners behind on their mortgage payments because of the bursting of the bubble.
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