The world's second largest economy has expanded considerably over the past six weeks following an improving United States' housing market, according to US Federal Reserve survey released on Wednesday. The survey concluded that rising housing market has contributed considerably in uplifting the economic growth of the country, eventually contributing to the US GDP growth. Housing activities, which recorded positive growth over the past quarters, have started to rise at a much faster pace at the end of the summer. The survey also cited growth in its 10 out of 12 regional banking districts between August and September.
Informally called as the Beige Book, the report also confirmed improvement in most of the districts with rising transport, construction and energy sector. According to the report, auto sales have also increased significantly in almost every part of the country but certain areas like manufacturing activities and hiring stayed at the same level without any budging. The employment conditions in the country were also improved from the last report submitted in August. Employment rate fell surprisingly last week, when it slid from 8.1 percent in August to 7.8 percent in September. Analysts confirmed that signs of depressing growth were less evident in the report that from what recorded in the previous report.
Home sales which showed low figures in the past month has recovered significantly this month with increasing newly built homes sales, confirmed central bank. In short, increase in home sales is one of the major factors that contributed to the economic growth of the country. The growth can be very much evident from this month's report which proved that economy of United States grew at an average rate of 1.3 percent over the last three-month period. Average mortgage rates in US were also up from the record lowest rates last week, which eventually fueled the housing market to help boost the US economic growth.
Stronger housing activities have contributed considerably to help boost the country's economic growth in the third quarter in almost every region of United States, following the rising home prices in most areas and increasing home sales. Lower rates have encouraged many people to pursue refinance, while most people are still unable to take advantage of the low rates. However, the housing market managed to take economic growth of the country out of its recovery phase.
