Housing Starts, Permits Rise as U.S. Builders Rebound

Housing starts climbed to an annual rate of 626,000 last month, up 1.6 percent from February’s revised 616,000 pace that was higher than initially estimated, Commerce Department figures showed today in Washington. Building permits, a sign of future construction, climbed to the highest level since October 2008.

Builders took advantage of milder weather following the February blizzards as they rushed to have properties available for buyers seeking to qualify for a government tax credit that expires at the end of June. The jump in permits signals demand will hold up even as foreclosures climb and the jobless rate hovers near a 26-year high.

“Permits, which are not significantly affected by weather, have been on a strong uptrend, and I think that tells us we are unambiguously seeing an improving trend in housing,” said Richard DeKaser, president of Woodley Park Economics in Washington.