U.S. Housing Starts Fall 7.9% in February

The pace of U.S. housing starts fell less than expected last month, suggesting housing demand is holding up in the face of higher mortgage rates.

Builders broke ground on new homes at an annual rate of 2.12 million in February, down 7.9 percent from January's revised 2.303 million, the Commerce Department said today in Washington. Building permits, a sign of future construction, fell 3.2 percent to an annual rate of 2.145 million.

Builders kept up the momentum in February after unusually mild January temperatures let them get an early start on the construction season. Housing starts probably will slow later this year as mortgage rates and selling prices put new homes out of the reach of more would-be buyers.

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Source: Bloomberg News