Strong increases in both single-family and multifamily starts raised our nationwide housing production 22.7 percent to a seasonally adjusted annual rate of 1.09 million in November, according to figures released by the Department of Housing and Urban Development and the U.S. Census Bureau.

"This report is in line with our latest survey, which shows that builders are increasingly confident that buyers who have sat on the sidelines are feeling more secure about their economic situation and are now moving to purchase new homes," says Rick Judson, chairman of the National Association of Home Builders. "This upward trend could be even stronger if not for persistently tight lending conditions for buyers and builders facing rising costs for building materials, lots and labor."

"Single-family and multifamily starts are at five-year highs, providing additional evidence that the recovery is here to stay," says David Crowe, NAHB's chief economist. "We hit a soft spot this fall when interest rates jumped and the government closed down, but mortgage rates still remain very affordable and pent-up demand is helping to boost the housing market. We expect a continued steady, gradual growth in starts and home sales in 2014."

Single-family starts posted a 20.8 percent gain to a seasonally adjusted annual rate of 727,000 units in November, which was their fastest rate since December 2007. Multifamily production was up 26 percent to 364,000 units. Regionally, combined starts activity rose 41.7 percent in the Midwest, 38.5 percent in the South and 8.8 percent in the West, but fell 29.4 percent in the Northeast.

Q: Will new mortgage application rules affect homebuyers in 2014?

A: The new rules will definitely affect the buyer's capability to obtain mortgage financing.

"If you're planning to buy a house next year — and unless you're in a position to make an all-cash offer — chances are you'll be affected by some significant changes occurring in the mortgage application process beginning in January," reports Real Trends. "Several federal agencies are implementing new policies aimed at addressing lax underwriting standards that led to the housing market crash more than five years ago. The new policies could play a role in how much house you can afford."

Q: When will the Fed back off from its program to keep mortgage rates super low?

A: There are indications that the end is near. "It's the beginning of the end for the Fed's quantitative easing program of purchasing Treasuries and mortgage-backed securities. We don't yet know or even have a sense of when the end may actually come, but it will come, and probably sometime around the third quarter of 2014," MSM Market Trends reports. "The $10 billion trim in the size of the program — a slowing in the pace of asset accumulation — still leaves the Fed buying $35 billion per month of MBS and $40 billion per month of Treasuries. For the most part, the markets were fairly prepared for the change, and were cheered by the strengthening of the Fed's commitment to keeping short-term rates low well into the future."

Q: Are home values rising in most areas?

A: Yes, values are continuing to rise in most markets. Home values rose in November, increasing 0.6 percent from October to a Zillow Home Value Index of $168,900, according to the November Zillow Report.

Home values were up 7.1 percent year over year, reflecting a continued slowdown from the summer selling season, when annual home value appreciation peaked at 7.3 percent.

A majority (77.1 percent) of the metros covered in the reports experienced home value appreciation between October and November, with only 95 of the 485 metro areas, or 19.6 percent, experiencing declines. On an annual basis, 88 percent of metros experienced home value appreciation.

Among the 35 largest metro areas covered by Zillow, 34 experienced year-over-year home value increases in November, with nearly half up by double-digit percentages.

Q: Is it too late to express an opinion about lowering the maximum amount of conforming mortgages?

A: No, it's not too late. In fact, the Federal Housing Finance Agency says it wants input on its plan to lower the ceiling for loans eligible for purchase by Fannie Mae and Freddie Mac.

Under the proposed plan, the $417,000 maximum limit for single-family homes in most areas around the country would be lowered to $400,000, a reduction of about 4 percent. Areas with higher limits would see a similar cut, with the $625,500 maximum dropping to $600,000.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.