Housing Starts Jump in March

Single-family housing starts rose 5.5% in March as construction activity accelerated in response to better weather, low mortgage rates, and strengthening economy.The U.S. Census Bureau reported that single-family starts increased from a seasonally adjusted annual rate of 1.52 million in February to 1.60 million in March. The February number was revised upward from 1.49 million. Despite a strong first quarter, economists at the National Association of Home Builders say they expect construction activity to slow in the second half of the year due to rising mortgage rates. "It may take a few months before the negative impact of higher rates kicks in, but it will matter," NAHB economist Michael Carliner said. The NAHB is forecasting 1.461 million single-family starts this year, down from 1.499 million in 2003. But the strong first-quarter numbers may prompt the NAHB economists to revise the 2004 number "up a little more," Mr. Carliner said. Meanwhile, multifamily starts jumped 11.2% in March to a seasonally adjusted annual rate of 377,000 units. The Census Bureau's construction statistics can be found online at http://www.census.gov/const/www/index.html.