Decline of Home Construction in US
There has been a drop in the number of houses being built in the US during the month of June. According to Commerce Department figures, US home construction is at its lowest level since October 2009.
Builders have been forced to hold back on building projects despite a reported 2.1% increase in building permit applications. This is a positive sign for the future but with the current US unemployment rate being under 10% there are no advancements as yet.
New home and apartment developments fell 5% between May and June which was triggered by a 20% decrease in demand for apartments and condominiums.
High unemployment rates are cancelling out mortgage rates being at a record low. The figures have highlighted the fragility of the US recovery.