Another sign of a strengthening economy shows that the government reported almost a 10 percent increase in home construction last month, the highest level since 2016.

National Association of Home Builders Chief Economist Robert Dietz says that’s welcome news for a housing market with a shortage of homes for sale, even with rising mortgage rates.

Dietz said, “Faster income growth and tax cuts from the tax reform effort in 2017, those will all help home buyers save and make a purchase of a home.”

Deitz also said, “We expect large amounts of production in the south and the west. That makes sense because those are the areas of the country that have both population growth, and where it’s a little easier to build new housing.”