Led by government spending, U.S. construction rises to nine-month high in February

The boost in residential construction spending along with falling mortgage rates signal the next few months may be a strong period for home sales, said Christopher Low, chief economist with FTN Financial. “For builders to come back like this, they must be optimistic for a reason,” Low said. “After coming out of a period of weakness at the end of last year, they must sense stronger demand.”