- Tom Woods, NAHB Chairman
US housing starts rose to the highest level since October 2007 in July, adding to further signs of economic improvement in the world's biggest economy. Groundreaking inched up 0.2% to a seasonally adjusted annual pace of 1.21 million units, according to the Commerce Department. Moreover, June's data was revised sharply higher to a 1.20 million-unit rate from the previously estimated 1.17 million-unit pace. Housing starts have been above one million for four months in a row. The upbeat housing data added to sturdy payrolls, retail sales and industrial production reports in suggesting the US economy started the third quarter on a firm footing. The slew of upbeat fundamentals reinforces the view the US central bank will hike rates in September. In July, groundbreaking for single-family homes, which makes up the largest share of the market, soared 12.8% to a 782,000 unit pace, the highest level since December 2007. However, starts for the volatile multifamily segment plummeted 17%.
At the same time building permits plunged 16.3% last month to a 1.12 million-unit pace. The decline followed three consecutive months of hefty increases and is likely to be temporary after a report on Monday showed confidence among homebuilders climbed to the highest level in almost a decade in August.
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