New home construction jumps by 17.2 percent in May

Housing construction jumped by 17.2 percent in May, the Associated Press reported this morning.

The increase in new homes construction is the largest increase in three months, and better than economist projections. Building permit applications also increased by four percent, marking another good sign for the housing industry.

The Associated Press article notes:

"The better-than-expected rebound in construction was the latest sign that the prolonged slump in housing is coming to an end, which would be good news for the broader economy.

The current recession — the longest since the Great Depression — was triggered by a collapse in the housing market that led to soaring loan losses and a banking system crisis. A healthy home market is needed to support an economic recovery."

Read the entire article here.