Housing Starts Jump

Single-family housing starts jumped 4.8% in November as the pace of construction once again hit a record level set earlier this year.The U.S. Census Bureau reported that single-family starts rebounded to a record seasonally adjusted annual rate of 1.81 million in November from a 1.73 million rate in October. Single-family starts hit 1.81 million in March for the first time ever. The November report shows that the housing market has a lot of momentum, according to a National Association of Home Builders economist, and 2005 will easily beat last year's record for single-family starts by about 7%. While single-family starts and new-home sales are expected to decline by 6%-7% next year, NAHB economist Michael Carliner said purchase mortgage originations on new homes in 2006 should exceed 2005 originations. Looking at all the houses under construction and in the pipeline, mortgage originations "will almost certainly be higher next year," Mr. Carliner said.