Following January’s surprising surge of 2.5 percent, U.S. construction spending rose yet again in February, this time by a more modest one percent. According to data released by the U.S. Department of Commerce, total construction spending in February was $1.32 trillion, the highest level since May 2018.
Driving the increases over the past few months was a spike in residential construction spending. The boost in new home building shows an attempt to meet anticipated demand as the spring-home buying season kicks off with falling mortgage rates.
Mortgage rates have dropped nearly a full percentage point since last fall. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.