U.S. housing starts
rebounded in March, spurred by cheap financing and better weather,
economists said they expect the government to report today.
Builders probably broke ground on new homes at a 1.7 million-
unit annual rate, up 4.8 percent from February’s 1.622 million, a
survey of economists found. The 11 percent drop in starts from
January was the most in nine years. In 2002, the industry started
1.705 million new houses, the most since 1986.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
With war looming last month, Treasury bond yields dropped as
investors sought a safe haven. That caused mortgage rates to fall
to the lowest on record and helped offset sinking consumer
confidence, economists said. A thaw from the worst snowstorms in
seven years in some parts of the country made it possible for
builders to get construction under way.
“Extremely low mortgage rates have continued to support home
sales at robust levels,” said Steven Wood, principal economist at
Insight Economics LLC in Walnut Creek, California, before the
report. “With relatively lean inventories, housing starts
increased to meet strong demand.”
The projection of housing starts is based on
the median of 64 forecasts in a Bloomberg News survey of
economists.
The consumer price index, the government’s broadest gauge of
inflation, rose 0.4 percent in March, economists said they expect
the Labor Department to report. Increased gasoline prices probably
helped push the index up.
Bloomberg News
