Housing Starts Rose 2.8% in January

Construction on new housing posted better-than-expected results, for an increase of 2.8% in the month of January.  This is the highest level of activity for housing starts in six months.  This positive report is thought to have been influenced by the first-time home buyer tax credit and the low mortgage rates.  It is also a sign that the housing market may be stabilizing, and recovering slowly but surely.

Yesterday, the Commerce Department reported that the construction of new homes and apartments rose to a seasonally adjusted annual rate of 591,000 units.  This is an improvement to the previously expected rate of 580,000 units annually.

Wednesday’s report also revised up for December’s housing starts.  Construction was actually beginning at a pace of 575,000 units during December, rather than the original number of 557,000 units.  However, even with this increase, this is still an overall decrease of 0.7% compared to the previous month.  This slight dip is attributed to the severe weather in many parts of the country, which slowed the construction activity.

For the full story on the increase in housing starts, check out this full article.

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Did Housing Starts Rose 2.8% in January Deliver on the Promise?
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