US builders break ground on most single-family homes in 6 months, seek most permits in 5 years

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FILE - In this Thursday, Aug. 1, 2013, file photo, a new home is under construction in Omaha, Neb.Th e Commerce Department reports the pace at which builders broke ground on homes in August on Wednesday, Sept. 18, 2013. (AP Photo/Nati Harnik, File)

WASHINGTON – U.S. builders started work in August on the most single-family homes in six months and requested permits to build even more in future months. The figures suggest housing remains are driver of economic growth despite higher mortgage rates.

The Commerce Department says builders increased construction of single-family homes 7 per cent to a seasonally adjusted annual rate of 628,000. That was the most since February. And they sought 627,000 permits for them, a 3 per cent increase from July and the most since May 2008.

Overall, builders broke ground on 891,000 houses and apartments last month, up from 883,000 the previous month. The gain in single-family homes was offset by a decline in volatile demand for apartments.

Permits fell to 918,000 from 954,000 in July, also because of a decline in apartments.

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