"At the same time, problems with appraisals and credit availability remain considerable obstacles to completing deals"
- NAHB Chairman Rick Judson
Construction of new homes in the world's largest economy nudged up in February, while building permits rocketed to the highest level in almost five years, demonstrating progress in the housing market that's helping boost the economy. According to the Commerce Department, the U.S. builders broke ground on 917,000 homes at an annual rate, or 0.8% more than in the preceding month. At the same time, building permits, which are considered to be a proxy for future construction, advanced 4.6% to 946,000, climbing the most since June 2008. A report also showed that starts for single-family homes added 0.5% in February to a rate of 618,000, the highest level since June 2008. Due to stabilisation of property values, confidence is being returned to the housing market and, together with record low mortgage rates, more Americans could become homeowners.
"Housing continues to be a bright spot for the economy, and this is a good report," said Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a subsidiary of the largest U.S. mortgage lender. "Permits definitely showed a big jump. As long as that is outpacing starts, we'll likely see another positive month next month."
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