What happened

Shares of NVR (NYSE:NVR) jumped nearly 14% last month, according to data provided by S&P Global Market Intelligence, following the homebuilding and mortgage-banking company's strong first-quarter results.

So what

NVR settled 15% more home sales during the first quarter. It also closed 13% more in mortgage volume. In turn, NVR's revenue rose 10% year over year, to $1.7 billion. Meanwhile, the homebuilder's earnings per share jumped 21%, to $47.64. That was significantly above analysts' estimates for earnings per share (EPS) of $33.59.

Little green toy houses on top of rising stacks of gold coins.

Image source: Getty Images.

Now what

Multiple economic trends are fueling the growth of the U.S. housing market. Low unemployment, rising wages, and declining mortgage rates are all helping to boost the affordability of new homes.

Demographic trends are also beginning to turn in NVR's favor. The U.S. population aged 35-44 is set to grow steadily over the next decade, according to Bank of America Merrill Lynch. These are key homebuying years. As the number of people in this age group increases, so, too, should demand for NVR's homebuilding services.

Moreover, the supply of new homes for sale in the U.S. is well below historical norms. So in addition to demand rising, supply remains constrained.

NVR -- as one of the nation's leading homebuilders -- should continue to profit handsomely as it helps America meet its need for new homes in the years ahead.