U.S new home construction accelerates, lenders sigh in relief.

U.S new home construction accelerates, lenders sigh in relief. It is a surprise for most economists but among the biggest economical crisis since the Second World War the United States now home construction index actually increased to an an  annual growth rate of 583,000 from a growth rate of 477,000 in January, the lowest in 50 years. What does this mean for you, for the United States and for home lenders and borrowers. This is complicated question with no easy answers. The World Crisis we are now undergoing is by no means over. Whether this is the beginning of the end of the crisis or an unrelated blip in the larger scheme of things is to be seen.

What cannot be denied is that the annual growth rate of new homes is a tremendously important index for a country, especially for a country immersed in a real estate depression and a credit crunch pandemonium. The fact builders are still willing to build and buyers are apparently willing to invest in a home is a breath of fresh air for those who want to be optimistic and see the current situation as temporary spike in the world economy.

Another interesting rate is the increase in planning permit application in the last month that has also increased by 3%. Economists and commentators are flabbergasted by the conflicting index rates that contradict the prevailing wave of economic disaster the world is seeing.

What should we read into these apparent improvements in certain sectors of the United Sates industry? Are they the signs of recuperation. The court is hanged on this in the opinion of experts. Some will point out that the overall trend from last year is still free falling. Also they argue that this is an unrelated and yet unexplainable anomaly in the overall world economic crisis, a mere rebound that will not have long lasting effects.

Other experts will point to the importance of the housing market in the causes and roots of the present crisis. This makes an increase in the growth of the rate of new homes an encouraging piece of data that might permit us a little optimism.

How should this situation affect you? As usual the answer is, it depends. If you have plenty of cash saved maybe now is the time to buy a juicy foreclosure or quick sale and take advantage of the favorable rates banks are offering. If you don’t have the capital and need to borrow you might have to think a little harder before committing yourself but it still might be the time to act. Time might be of the essence if these growth rates are significant and predict a larger turn round of the world economy.

A word of warning that will not go amiss is to beware of knee jerk reactions. Unless your situation is very well protected by personal assets it is not a time for excessive financial risks. This must be of course tempered with an honest attempt to seize the moment and enjoy the profits of bold investment.