Quarterly U.S. Put-in-Place Construction Forecasts Report, Winter 2021-2022

To tackle a +6.8% year-over-year CPI inflation rate, the Federal Reserve has stated it will be pursuing QT rather than QE in the year ahead, quantitative tightening rather than easing, and that there may be as many as three upwards adjustments to interest rates. On the residential construction side, the expectation of higher interest rates may counterintuitively speed up groundbreakings for a while as prospective new homeowners try to beat the financing cost increases.

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