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Daily Digit: Housing starts drop to 836K

Wednesday, July 17, 2013 - 01:00

July 17 - Groundbreaking on new U.S. homes surprisingly tumbled to 836,000 in June, a seasonally adjusted drop of 9.9 percent, but there is little to worry about the housing recovery. Conway G. Gittens reports.

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The Daily Digit is 836,000. The number of new home construction projects in the U.S. dropped nearly 10 percent to 836,000 in June. While that surprise slowdown to a 10-month low, adds to signs the U.S. economy slowed dramatically at the end of last quarter, a deeper look at the numbers suggest the housing recovery remains on track. Why? The big reason for the slide is tied to multi-family dwellings. That's right - construction on buildings largely used for apartment rentals - tumbled, but that segment of housing is notoriously volatile and is less important than single-family housing, where the drop was not even one percent. Also keep in mind, a recent survey from the National Association of Home Builders jumped to a 7-1/2 year high, mortgage rates have stabilized after a spike last month, and Federal Reserve Chairman Ben Bernanke says the Fed won't be hiking its key lending rate anytime soon.

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Daily Digit: Housing starts drop to 836K

Wednesday, July 17, 2013 - 01:00