Historically-low mortgage rates, stabilizing but still-low prices, and a first-time home buyer tax credit all combined to provide a lift to housing starts, while the more forward-looking building permits continued to move ahead.
Housing starts in August grew 1.5% from June’s upwardly-revised figure to 598,000 annualized units. Starts are now up four-consecutive months after hitting a low in April of 465,000 units, though single-family homes eased slightly.
Building permits, which provide an indication of future activity, increased a modest 2.7% to 579,000 units.
Builder confidence edge up based on yesterday’s Housing Market Index but some construction outfits are looking cautiously past November 30, when the $8,000 tax credit for first-time home buyers is set to expire.
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