Housing Starts Climb 2.1 Percent As Apartment Building Revives
HOUSING starts rose 2.1 percent in August, boosted by a double-digit jump in apartment construction, the Commerce Department said yesterday. But single-family construction was hurt by higher mortgage rates.Skip to next paragraph
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Strong gains in the Northeast and South offset declines in the Midwest and West. Starts totaled 1.44 million at an annual rate, up from a revised 1.41 million in July. Apartment construction surged 28.5 percent, to a 275,000 annual rate, on top of a 9.7 percent advance in July. But single-family starts dropped 2.7 percent for the sixth decline this year.
David Lereah of the Mortgage Bankers Association says he expects mortgage rates to reach about 9 percent by the end of 1994, from under 7 percent nearly a year ago, and approach 10 percent by the end of 1995.