Housing starts in the U.S. rose 6.3% in September from a month earlier to a seasonally adjusted annual rate of 1.017 million units, the Commerce Department reported Friday. The actual figure of new homes was slightly revised upwards to 957,000 from the expected 956,000. However, this print is 12.8% lower as compared to July.
This year, the U.S. housing market has been improving in the erratic manner in the context of new requirements for mortgages which prevent Americans from applying for credits with low interest rates. On the plus side, steady growth of jobs and wages is expected to boost the housing market including housing starts.
According to Brett Ryan, expert in the U.S. markets at New York-based Deutsche Bank Securities Inc., in case the U.S. labor market adds 200,000 – 250,000 new jobs per month, this will boost demand for homes.
Single-family construction increased 1.1% to 646,000 in September from 652,000 in August. Multifamily housing starts also took off in early Autumn.
