Kathy Cochran-Absolute Mortgage Los Gatos, California

Homes are getting bigger and more expensive as the economy recovers.

Filed under: News, Buying, Economy Lynne Sladky/APCranes fill the skyline at the Brickell CityCentre construction site in downtown Miami. By Lucia Mutikani... WASHINGTON -- U.S. construction spending rose less than expected in May, which could prompt a further downgrading of second-quarter economic growth estimates. Construction spending edged up 0.1 percent to an annual rate of $956.1 billion, the Commerce Department said Tuesday. However, April's construction spending was revised up to show a 0.8 percent rise, taking some of the sting out of the report. Economists polled by Reuters had expected construction spending to advance 0.5 percent after a previously reported 0.2 percent gain. The data was the latest to suggest the economy's rebound from a brutally cold winter could fall short of expectations. Growth contracted at a 2.9 percent annual pace in the first quarter, also weighed down by a slow pace of inventory accumulation by businesses. Economists last week slashed their second-quarter growth estimates after weak consumer spending in May. Growth forecasts are now running as high as a 3.5 percent pace and as low as a 2.1 percent rate. Construction spending in May was held back by a 0.3 percent decline in private construction projects, which offset a 1 percent rise in public construction outlays. Private construction is the largest portion of construction spending. Private residential construction tumbled 1.5 percent, reflecting weak housing starts. A run-up in mortgage rates has stymied the housing market recovery. Investment in home building and nonresidential structures such as factories and gas pipelines contracted in the first three months of this year for a second straight quarter. Spending by the federal government dropped 8.9 percent, the largest fall since December 2010. State and local government projects increased a solid 2 percent. Permalink | Email this | Comments

Calling all real estate and staging professionals: We want to see how you’ve spruced up properties for-sale! REALTOR Magazine is working on its annual House & Home issue, and we’re looking for professionals to share some of their best staging photos and tips! Have you incorporated some of the latest home design trends into your […]

It only takes a few inches of floodwater to cause damage to a home than can easily add up to tens of thousands of dollars. But because basic homeowners insurance specifically excludes property damage or loss related to rising floodwaters, some homeowners must also purchase flood insurance. This affords a homeowner protection to cover losses caused by the peril of rising waters outside of the home, particularly if the home is located in an area known for being a flood risk.

A government program launched last summer by the Federal Housing Administration is helping people who lost their homes due to foreclosure or short...