The proportion of newly initiated residential construction projects experienced a rise of 9.6%.
In the run-up to the anticipated interest rate shift in the USA, pleasant developments are arising from the property market. The pace of new housing projects unexpectedly quickened in August. The quantity of fresh projects initiated, taking into account the year, escalated by 9.6% to 1,356,000, as reported by the U.S. Department of Commerce on Wednesday. Experts polled by Reuters anticipated merely 1,310,000, following 1,237,000 in July.
The amount of permits, serving as preliminary signs for forthcoming building work, swelled by 4.9% to a yearly 1,475,000 in August. Economists had projected only 1,410,000.
On the financial markets, it's widely anticipated that the Federal Reserve (Fed) will implement the rate cut in the evening (20:00 CEST), which should energize the U.S. real estate sector. The U.S. prime rate has remained within a range of 5.25 to 5.50% since July 2023. Traders are guessing whether the Fed will make the rate cut by a quarter of a percentage point or take a bolder move, reducing the rate by half a percentage point.
The number of new housing projects that initiated unexpectedly increased by 9.6% in August, reaching 1,356,000, as reported by the U.S. Department of Commerce. The number of permits, indicating potential building work, also increased substantially in August, rising by 4.9% to 1,475,000.
