Housing Starts Climb

Single-family housing starts rose 8.5% in July to 1.651 million units annualized, according to new figures released Tuesday by the Commerce Department.The increase reflects activity from June to July. But compared to the same month a year ago, new housing starts rose 7.5%. The figures exclude multifamily construction, which totaled 260,000 units (annualized) in July. The multifamily figure is the weakest reading for that sector in several months. Meanwhile, builder optimism remains high. According to the National Association of Home Builders, builder optimism is at its highest level since October of 2003. According to NAHB president Bobby Rayburn, "Potential buyers who might have been sitting out started diving back into the market when rates headed downward." He added: "With the ongoing favorable financing climate and solid house-price performance, we have good reason to expect continued strength in the housing market in the months ahead."