Housing starts rose 10.7% to a seasonally adjusted annual rate of 1.521 million units in February as single-family housing starts hit the highest level in nearly two years, according to Reuters. Economists expected starts to increase to 1.425 million units.
Applications for building permits, a good indication of future activity, rose 1.9% to 1.518 million units in February.
Single-family housing starts rose 11.6% to a rate of 1.129 million units, with mild weather and a shortage of previously owned houses on the market likely contributing to the boost. Multifamily starts rose 8.6% to a rate of 377,000 units. Building permits for single-family homes rose 1% to a rate of 1.031 million units, and permits for multifamily homes climbed 2.4% to a rate of 429,000 units.
The rate on the 30-year fixed mortgage has retreated in recent weeks and has been hovering around 7%.
