New single-family home constructions in the United States surged to their highest level in three decades in May and permits for future constructions also increased.
The new constructions are an indication that the housing market may be turning a corner after feeling the pinch of Federal Reserve interest rate hikes.
Notwithstanding, interest rates are expected to rise again in July, after the Fed paused hikes in June for the first time since early 2022.
Increased interest rates could lead to a drop in new home constructions later this year.
