U.S. homebuilder confidence eased slightly in December to the second-best level on record following the prior month’s peak, signaling that low mortgage rates are still giving the industry a major boost.

A gauge of builder sentiment slipped to 86 from November’s reading of 90 that was the highest in records back to 1985, according to the National Association of Home Builders/Wells Fargo Housing Market Index released Wednesday. The figure was below the median forecast of 88 in Bloomberg’s survey of economists.

Wealthy Americans, largely untouched by the recession and eager for more living space, have been on a homebuying binge.

Demand for million-dollar homes is growing faster than any other price tier in the pandemic-driven U.S. housing boom. In October, applications for mortgages larger than $766,000 jumped 59%, the biggest gain for all segments measured by the Mortgage Bankers Association. By comparison, the increase for mortgages from $150,000 to $300,000 was 13%.

Strong homebuilding activity in North America will mean tight wood supply and demand for several more years, according to the top executive of the world’s largest lumber producer.

“In the next five years, we see housing starts continuing to be strong and an industry that will be working hard to keep up with demand,” West Fraser Timber Co. Ltd. Chief Executive Officer Ray Ferris said Wednesday in a phone interview.

Sales of previously owned U.S. homes unexpectedly rose in October to the highest level in almost 15 years, extending a housing market boom fueled by record-low mortgage rates and buyers’ desire for properties in the suburbs.

Contract closings increased 4.3% from the prior month to an annualized 6.85 million, the strongest pace since November 2005, according to National Association of Realtors data released Thursday. The October rate exceeded all economists’ forecasts in a Bloomberg survey, which had a median estimate of 6.47 million.

Sales of previously owned U.S. homes rose more than expected in September to the highest level in 14 years as a desire for more space and record-low mortgage rates continue to support demand.

Contract closings increased 9.4% from the prior month to an annualized 6.54 million, the fastest pace since May 2006, after a downwardly revised 5.98 million in August, according to National Association of Realtors data released Thursday. The median forecast in a Bloomberg survey of economists called for a 6.3 million rate in September. Single-family home sales outpaced purchases of condominiums.

U.S. new home starts increased in September on a sharp gain in single-family house construction while building permits climbed, indicating residential building had plenty of momentum at the end of the third quarter.

Residential starts increased 1.9% to a 1.42 million annualized rate from a month earlier, according to a government report released Tuesday. The median forecast in a Bloomberg survey of economists called for a 1.47 million pace. Applications to build, a proxy for future construction, rose 5.2% to a 1.55 million rate, the fastest since 2007 and topping forecasts.

Construction on new homes surged to the highest level in more than a decade as Canada’s housing market continues to defy expectations of a slowdown.

Housing starts surged to 262,396 units in August on an annualized basis, up 6.9% from an already elevated 245,425 units a month earlier, Canada Mortgage and Housing Corp. said Wednesday in Ottawa. The highest monthly total since September 2007 was powered by new construction in Toronto and Vancouver, particularly multiple units like condos.

Time to Make Some Stuff

The bounce-back from the pandemicession is still pretty tentative, and Friday morning’s jobs report may give us a better sense of just how tentative. But construction and manufacturing are already looking strong, writes Conor Sen, raising the possibility that this will be the first recovery in a long, long time to be led by the goods-producing sectors. That’s welcome news because it could mean big job gains even as other parts of the economy continue to be held back by Covid-19.

The housing market is booming because people who figure they’ll be working from home a lot need more space. With the supply of available houses on the low side even before the pandemic, that’s good news for those who know how to build them. Meanwhile, things are looking up for U.S. manufacturers due to a combination of pent-up consumer demand and a weak dollar. And though that weak dollar is frustrating for policy makers in the euro zone, argue Mark Gilbert and Marcus Ashworth, they need to resist the urge to start a currency war that could derail the global recovery.

ResiBuilt Homes was supposed to raise $250 million to develop single-family rental communities, but the deal was scuttled in March after the Covid-19 pandemic brought the U.S. economy to a halt.

Now, the Atlanta-based builder is out raising money again, and it’s seeking nearly five times the original amount. ResiBuilt is working with New York investment bank Whelan Advisory to raise $400 million in equity and $800 million in debt to build and manage rental houses as it looks to capitalize on demand for larger living spaces and investor appetite for ways to bet on the suburbs.

Mortgage rates have once again dipped below 3%.

The average for a 30-year fixed loan was 2.99%, just off the record low set two weeks ago, Freddie Mac said in a statement Thursday. Rates had ticked up to 3.01% last week.

New-home sales in the U.S. increased to an almost 13-year high in June, fueled by record-low borrowing costs and adding to evidence that residential real estate is a bright spot for the economy.

Purchases of new single-family houses climbed 13.8% to a 776,000 annualized pace after an upwardly revised May increase of 19.4%, government data showed Friday. The June pace exceeded all economists’ forecasts in a Bloomberg survey that had a median estimate of 700,000. The median selling price rose 5.6% from a year earlier to $329,200 as inventory shrank.