"Housing is absolutely going in the right direction"
- Harm Bandholz, chief U.S. economist at UniCredit Group
The number of housing starts in the world's biggest economy soared to a four-year high, a sign nation's property market is gaining momentum. The U.S. Census Bureau said that starts rose 3.6% to an 894,000 annual rate, expanding at its fastest pace since July 2008. On a yearly basis, housing starts soared 42%, while the rate still remains far below a bubble peak of around 2.3 million in 2006. The record-low mortgage rates may attract U.S. home buyers, giving the boost to the economy.
"Housing is absolutely going in the right direction," said Harm Bandholz, chief U.S. economist at UniCredit Group in New York, who projected 870,000 starts at an annual rate. "Excess supply has been wound down and there's a steady increase in demand. That's good for construction."
"Single-family housing starts and permits were above expectations for October, suggesting more residential investment in the fourth quarter," Macroeconomic Advisers analysts wrote in a research note.
Standard & Poor's added 0.07 per cent to 1,387.81. The Dow Jones Industrial Average slipped 0.06 per cent, or 7.45 points, to 12,788.51. The Nasdaq Composite rose 0.02 per cent to 2,849.39.
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