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The Federal Reserve has chosen to prompt growth in housing market in September, by pledging to buy $40 billion in mortgage-backed securities per month to revive the labour market. Residential construction rose by 41.9% comparing with last year's October, while housing starts make 40% of their 2.27 million-unit high in January of the year 2006.
"Housing is absolutely going in the right direction. Excess supply has been wound down and there's a steady increase in demand," said Harm Bandholz, chief U.S. economist at UniCredit Group in New York.