At the conclusion of its November meeting, the Federal Open Market Committee chose not to increase the federal funds rate. The Fed's comments gave no definitive signal of when the next increase will come, though it is widely anticipated that the first and only rate hike of 2016 will occur in December. While national job gains have been "solid," according to the Fed, concerns remain about weak GDP growth related to soft business investment.
However, housing data continually indicates improving market conditions. The month of September saw:
Pending home sales rise 2.4% higher than one year ago;
New single-family home sales grow 3.1% from the previous month; and
The share of first-time buyers of existing homes increase to 34%.
At just a 4.8 months' supply, inventory of new homes for sale remains tight. Meanwhile, multifamily construction spending reached a historic high in September. And in the remodeling industry, NAHB surveys show 14 consecutive quarters of positive market conditions.
–NAHB Chief Economist Robert Dietz