Washington, August 17— Housing starts surged by a larger-than-expected 8.3% to a seasonally adjusted annual rate of 1.978 million in July, according to the Commerce Department.
This follows a revised decline of 7.7% in June to a 1.826 million rate, narrower than the previously estimated drop of 8.5% to a 1.802 million annual rate.
Economists had predicted new construction would rise by 4.6% to a 1.885 million annual rate.This follows a revised decline of 7.7% in June to a 1.826 million rate, narrower than the previously estimated drop of 8.5% to a 1.802 million annual rate.
Economists had predicted new construction would rise by 4.6% to a 1.885 million annual rate.
Analysts have been predicting an end to the red hot housing market as historically low interest rates began creeping higher in recent months. However, the rate for a 30-year, fixed-rate mortgage dipped in recent weeks and is credited with renewed vigor in the market. Freddie Mac reported the average rate at 5.85% last week as concerns about the economy drove rates lower.
The July report showed that building permits, an indicator of future building activity, rose 5.7% to a 2.055 million annual rate. Single-family starts rose by 8.5% while multifamily starts, or starts on apartment buildings, dropped 6.5%. Starts rose in all regions, helped by favorable weather conditions.
