U.S. housing market still thriving

U.S. housing market still thriving

The US housing market remains in the midst of a boom and June figures for housing starts indicate it will not let up any time soon. This is particularly good news for steel-related businesses such as concrete reinforcing, appliance, steel door, and roofing manufacturers. Although housing starts fell 2.5 percent in June for single family homes, starts on multifamily dwellings increased 14.2 percent. June figures show a 1.667 annualized rate for single family starts and a 337’000 rate for multifamily starts. New building permits for housing increased 2.4% in June to 2.111 million up from 2.062 million in May. The National Association of Home Builders and Wells Fargo reported their June housing market index reached 72, a six-year high. The marked index fell to 70 in July indicating some depreciation. It is too soon to tell if this is the beginning of the end of the housing boom and the government cautions it may take up to five months to establish a new housing starts trend. Robust price appreciation and low mortgage rates have kept the housing market flourishing this year with an estimated 2.004 million annual rate for housing starts "Until mortgage rates rise significantly, housing should remain solid," said Joel Naroff, president of Naroff Economic Advisers. Industry groups predict another strong year for sales and construction.