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The housing recovery program of the U.S. has really blossomed in September of this year. The trend is considered to be home building surged, the pace of which is a four-year high. The current improving situation was reported by the government on Wednesday. And according to the presented report builders were working at an annual pace of 872,000 homes last month, which is 15% up in comparison with the pace in August. Permits to build homes at an annual rate of 894,000 were filed, which is 11.6% up than in the previous month. The crisis of building industry was caused by the situation before 2008, when the meltdown in many financial markets makes home lending and building business just to freeze up. Today mortgage rates are near record lows. As well as one more positive point is that the Federal Reserve's decided every month to buy $40 billion in mortgages which is likely to help to keep rates low for the predictable future. The low mortgage rates that are coupled with affordable housing prices and a drop in unemployment have already played a big role in restarting home sales. This year the best results were achieved. The situation with home building was kind of depressed for the last four years, and that caused decreasing of the supply of new homes on the market to nearly record lows as it was explained in a separate government report. All current factors have already helped to increase home prices somehow as well as finally to get builders back to building again. In the result the situation is changing for better, according the improvement in these latest numbers which happened to be far greater than they were expected to be this year. Anika Khan, senior economist with Wells Fargo Securities notified about some of the government's expectation concerning the building issue for a close future and called the represent situation to be just a 'big jump though'. The economists' survey made by Briefing.com showed that starts would increase to a 768,000 rate, when permits was likely to edge up to the rate of 815,000. On Tuesday, the information concerning October survey of members of the National Association of Home Builders proved the confidence among builders concerning the highest level of building rates since 2006. The survey showed more enthusiasm in comparison to the past four years, as just 20% of the builders which were surveyed characterized current building business conditions as good, when still 39% considered them to be poor. But even thus it says about some changes for better. The stocks of most of the publicly traded builders were lifted. According the last data, on Wednesday such of those as PulteGroup (PHM), Lennar (LEN), DR Horton (DHI) and KB Home (KBH) were all up between 2% and 4%. And if to talk about prices of builders' stocks, those have already been increased twice on average during this year, so it promises the situation to change more and for better.
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