Despite heightened volatility in the financial markets and elevated uncertainty in the economy, demand for new housing construction continues to see stable growth.
In its first quarter earnings report, homebuilder Lennar (LEN) identified four key reasons why the housing market recovery remains robust.
“We continue to believe that the housing market is contuing its slow and steady recovery driven by years of under production, tight inventory levels, attractive interest rates and the lowest unemployment levels since 2008,” CEO Stuart Miller said.
Indeed, buyers are feeling confident thanks to the economic tailwind. As of Feburary, the US unemployment rate was low at 4.9%. Meanwhile, weekly initial claims for unemployment insurance have been below 300,000 for 55 weeks, which marks the longest stretch since 1973.
The current 30-year mortgage rate is histroically cheap at 3.71%, according to mortgage buyer Freddie Mac.