This blog post updates our post from August 16 on housing, and the most recent data shows that the upward trends in the nation’s housing market continues.

• August 2012 permits were 803,000 at a seasonally adjusted annual rate -- 24.5 percent above the year-ago level of 645,000, and just 1 percent below the previous month. For year-to-date 2012, total permits rose 25.9 percent, single-family permits increased 18.7 percent, and multi-family permits jumped 41.2 percent.  
• August 2012 starts increased 2.3 percent from July 2012 levels, reflecting a 5.5-percent increase in single-family starts. August starts were 29.1% percent higher than one year ago.
• For year-to-date 2012, total starts advanced 25.1 percent, single-family starts rose 20.2 percent, and multi-family starts climbed 37.9 percent. 
•  Housing completions were also up 0.7 percent from July and 11.7 percent above the August 2011 rate.

The August 2012 report is supported by other positive trends in the industry:

• According to the National Association of Realtors, 2012 year-to-date new home sales are 19.7 percent above the same period last year. Existing home sales are 7.6 percent above the same period last year.
• According to the Federal Reserve Board, the average rate for a 30-year fixed-rate first mortgage is 3.6 percent.

Today’s low home interest rates make purchasing a home more affordable. Congress is considering new legislation that would allow homeowners to take advantage of today’s historically low rates by refinancing their mortgages. Under the new Home Affordable Refinance Program, more than 12 million homeowners would qualify to refinance. This bill is just one more step toward stabilizing the housing market and strengthening the middles class.

~Lauren Lipovic, U.S. Department of Commerce

September 21, 2012