A sign things are turning around? “Construction on new U.S. homes soared in November to hit the fastest pace since early 2008, signaling that the housing market’s recovery is shaking off rising mortgage rates,” reports MarketWatch.
“Housing starts leaped 22.7% in November to reach a seasonally adjusted annual rate of 1.09 million, with surges for single-family homes and apartments, according to the U.S. Department of Commerce. Economists polled by MarketWatch had expected overall housing starts in November to hit a rate of 963,000.”
“Builders and buyers are becoming accustomed to the new price environment, and, as long as jobs keep showing healthy growth, the housing market’s rebound will also continue, analysts say.”
“’The re-acceleration in activity is a clear indication of the resiliency in the housing market and should provide further confirmation of the sustainability of the recovery even if the [Federal Reserve] proceeds with its plans to cut back on asset purchases,’ Millan Mulraine, director of U.S. research and strategy at TD Securities, wrote in a research note. ‘In fact, with the recent buoyancy in labor market activity and affordability conditions remaining very favorable, we expect the re-acceleration in the pace of housing starts to be sustained in the coming months.'”
In metal price news for construction…
The week’s biggest mover on the weekly Construction MMI®, US shredded scrap jumped 2.5 percent to close. The price of Chinese rebar rose 0.5 percent over the past week. This was the third week in a row of increasing prices. The Chinese low price of 62% Australian iron ore fines closed after a flat week. The week finished with no movement for Chinese H-beam steel.
Chinese aluminum bar remained unchanged for the week. Prices for European 1050 aluminum remained constant, closing the week.
Following a 0.7 percent drop, the weekly US Gulf Coast bar fuel surcharge finished the week. The weekly US Midwest bar fuel surcharge fell 0.3 percent last week. The weekly US Rocky Mountain bar fuel surcharge traded sideways last week.
The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends. For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.