Housing inventory

Contract closings increased 4.8% to an annualized rate of 4.15 million in November, the most since March, according to data released Thursday by the National Association of Realtors.

US new-home construction unexpectedly fell in November as a drop in multifamily projects mitigated a rebound in starts of single-family houses, solely in the storm-ravaged South.  

The latest plans include details on promoting housing development in underserved areas and increasing secondary market access to rural institutions.

U.S. lumber prices, which already have risen in recent months due to lower production in Canada, could see further gains after President-elect Donald Trump's proposed tariffs on trade from north of the border.

"If he manages to get through the policies that he's proposing, that will be really bad news," says Desmond Lachman, an economist at the conservative American Enterprise Institute.

The development is the latest in an ongoing series of initiatives the Department of Housing and Urban Development has introduced to encourage growth of the factory-built construction segment.

Developers "need those cuts badly" because many projects are financed at floating rates, Jorge Perez, founder and chief executive officer of Related Group, said in an interview on Bloomberg Television.

Housing starts decreased 3.1% last month to a 1.31 million annualized rate, reflecting a steep decline in the South, according to government data released Tuesday.

Confidence among U.S. homebuilders advanced to a seven-month high in November on a jump in sales expectations and optimism a Trump administration will ease regulatory burdens.

Residential construction companies facing their own construction cost burdens are continuing sales incentives that have cut into some of the largest players' profit margins.