After a surge earlier in the year, construction spending in the U.S. was relatively flat from March to April. According to data released by the U.S. Census Bureau, total construction spending in April was $1.3 trillion, roughly the same as March and 1.2 percent below the same month last year.
Increases in spending over the last several months have been driven largely by spikes in residential construction. Homebuilders are optimistic about the future of the housing market but are struggling to meet buyer demand for single-family homes.
Low mortgage rates and the summer home buying season is expected to keep demand for homes elevated through the coming months at least.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent, 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.