Housing Starts at Highest Level in 20 Years

Single-family housing starts jumped 2.7% in January to 1.76 million units on an annualized basis, according to new figures released by the Commerce Department.Total housing starts -- including multifamily construction -- came in at 2.159 million units, the highest level in almost 20 years. But the news isn't all rosy. Government figures show that home construction in the South (up 20% from December to January) is where most of the action is. Single-family starts actually fell by almost 9% in the West, 12.9% in the Northeast, and 15.2% in the Midwest. The January increase caught some housing economists by surprise. It was anticipated that bad weather in the Northeast and rain in the West might hold down construction activity even more. But builders broke ground on the largest number of new homes and apartments since February 1984 when construction starts hit an annual rate of 2.26 million units. At last check, lenders were charging 5.6% for 30-year conventional mortgages.