Builders added 50,000 jobs in December after a 48,000 increase in November – a trend that has led to more homes being built, reports Lorraine Woellert of Redfin.
“Warm weather drove construction employment higher for the third month in a row in December,” Redfin chief economist Nela Richardson said. “This was a boon to the huge increase in jobs overall and it bodes well for housing starts in the first quarter. The lack of workers has been a big impediment to new construction.”
Woellert also warns, though, of the looming interest rate raise that would most likely lead to more expensive home loans.
desperate for good news, and now have it, but it comes with a caveat because
better employment growth means the Fed will raise rates faster,” said Beth Ann
Bovino, U.S. chief economist at Standard & Poor’s Ratings Services.