Housing Starts Rebound

Single-family housing starts rebounded 5.7% in October as low mortgage rates and strong homebuyer demand continued to fuel another record-breaking year for homebuilders.The U.S. Census Bureau reported that single-family starts increased from a seasonally adjusted annual rate of 1.56 million in September to 1.65 million in October. The National Association of Home Builders estimates that single-family construction activity this year will beat the 2003 record of 1.50 million starts by 6%. Meanwhile, a November survey by the NAHB shows that builders remain optimistic about the momentum in the housing market. That confidence is based not just on low mortgage rates, but also on the "interest they are seeing from customers," said NAHB economist Michael Carliner. Mr. Carliner said he expects a pick-up in job growth to support the housing market next year, despite rising mortgage rates. The Census Bureau also reported that multifamily (five or more units) starts rose 7.0% to a seasonally adjusted annual rate of 338,000 in October from a 316,000 rate in September.