Dec 8, 2010

Rise in spending on residential construction.

According to Wall street Journal, spending on new construction rose in October for a second month in a row, due mainly to a pickup in residential construction, according to the U.S. Census Bureau. It rose to a seasonally adjusted annual rate of $802.3 billion, up 0.7% from September. Spending on residential construction was up 2.4% in October from the month before, to a rate of $240.3 billion, but was down 8% from a year earlier. Nonresidential spending fell 0.1% in October from September to $562.0 billion and was down 9.9% from October 2009.

This is a positive sign that builders are predicting that there will be a demand in residential homes. PrivoCorp is a processing company and we do not originate loans.

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