Home Building Starts Up

Home builders in the U.S broke ground in August on the most single-family homes in six months and requested permits to construct even more in future months. The data would suggest that housing remains a driver of economic growth despite higher mortgage rates. According to the Commerce Department, construction of single-family homes started rose to 628,000 in August, a gain of a seasonally adjusted rate of 7%. Housing starts are up 19% over last year. The housing market has seen steady growth over the past year, with the industry being boosted by low mortgage rates and consistent job growth. Mortgage rates have risen though, and are expected to rise further, but because rates are still low by historical standards most economists expect the housing recovery to withstand the rate adjustments. Additionally, homebuilder confidence remains at its highest level in almost 8 years according to the National Association of Home Builders (NAHB). To read the full story visit the News & Observer