Housing starts across the nation fell for the third consecutive month in May, according to information from the Department of Commerce. The 5.5 percent decline is further indication that builders are failing to meet buyer demand for housing.
Southern California in particular has suffered from an imbalance of supply and demand in the housing market for the last several years. San Diego has been ranked among the top 10 metropolitan areas suffering from "critically low home building" according to the National Association of Realtors.
Residential building permits, the benchmark for upcoming construction projects dropped 4.9 percent last month. This is in contrast to economists' predictions who in a survey by The Wall Street Journal had anticipated an increase of 3.4 percent.
A healthy job market and low interest rates are fueling the need for more housing nationwide. Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent while 15-year rates are near 3.125 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.