Housing starts in the United States rebounded last month from the lowest level in more than six years while building permits dropped to a nine-year low, suggesting weakness in home construction will persist next year.
Builders broke ground on new dwellings at an annual rate of 1.588 million units last month which was more than expected and 6.7 per cent higher than October's 1.488 million rate, the Department of Commerce said yesterday. Building permits fell 3 per cent to a 1.506 million pace, the lowest since December 1997.
Recent data suggests the most severe housing slowdown since 1990 may be nearing a bottom, as mortgage rates have fallen below last year's levels, making homes affordable for more people.
Wet weather in October may have delayed some starts until last month, boosting figures. Still, near-record inventories of unsold homes will curb home construction next year.Bloomberg