Housing Starts Up 0.6% In August

Washington, September 21–Housing starts increased 0.6% to a seasonally adjusted 2.000 million annual rate in August, the Commerce Department said Tuesday.

Economists had forecast a 1.4% decline. Building permits, an indicator of future building activity, decreased by 5.5% to a 1.952 million annual rate.

Starts rose 9.4% in July to a 1.988 million rate. That marked a revision upward from a previously reported 8.3% advance to 1.978 million. Permits climbed 6.2% in July to 2.066 million.

Mortgage rates have been relatively low this year. The average 30-year rate broke above the 6% mark in the spring, reaching 6.34% in mid-May, but then steadily slid back, hitting 5.75% last week, according to Freddie Mac.

Single-family housing starts increased by 0.4% in August, as did multi-family starts — that is, apartment building construction.

Regionally, starts rose 6.5% in the Northeast, 4.8% in the Midwest, and 1.0% in the South. Starts fell 4.7% in the West last month.