Credit, Economy and Financial News from TruckingFactor.com

Housing Starts Jump 22.2% in February

Housing starts shot up in February, surprising economists who expected another decline in activity. The Commerce Department said the number of new housing projects that builders broke ground on jumped 22.2% from January to a seasonally adjusted annual rate of 583,000 units. The gain was led by a big increase in starts of multifamily units, which increased 102,000 to a 226,000 annual pace. Single-family starts grew at a slower pace to a 357,000 annual rate from January's 353,000. By region, all parts of the country reported an increase in housing starts, except for the West, which has been hardest hit by the housing slump. Moreover, applications for building permits, considered a barometer of future activity, grew 3% in February. Nevertheless, highlighting how far the housing market has fallen, housing starts in February were down a whopping 47.3% from a year ago, despite the gain from January.

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Date Last Updated: 03/18/2009