Home construction increases 2.3 percent, possibly indicates turnaround

Construction on new houses increased 2.3 percent in the month of August, possibly indicating a turning point in the housing market, according to Reuters.

In August, construction on 750,000 houses commenced, an improvement over the 733,000 houses that were started in July.

Not only is home builder confidence at it highest point in six years, but for the first time in seven years, house building is expected to contribute to the nation’s GDP.

Last week, in hopes of improving the economy, the Federal Reserve committed to buying $40 billion of mortgage-backed securities each month until unemployment statistics greatly improve.

New construction on single-family houses increased 5.5 percent, the greatest it’s been since April 2010, while multi-family home construction decreased 4.9 percent.

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