The Bureau of Labor Statistics reported an estimated net job growth of 211,000 last month, an indicator that the Federal Reserve can be expected to increase short-term interest rates soon. Eye on Housing's Robert Dietz takes a look at this report from the latest Eye on the Economy survey.
The National Association of Home Builders believe that in December the monetary tightening will begin but stresses the importance of remembering mortgage interest rates are more responsive to long-term rates:
And with typical effective interest rates for new home sales hovering near 4%, the more important challenge for prospective home buyers remains accumulating the necessary downpayment. Thus, NAHB expects single-family construction to continue to expand in 2016 as rates rise.
Head over to Eye On Housing to learn more about the expected increase in short-term interest rates: