Housing Starts Surge to 16-Year High Rate

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The number of new homes being built in the United States jumped 13.3% in September to an annual rate of 1.843 million – the highest in 16 years, the Commerce Department said.

Home construction triggers demand for trucks to haul building materials as well as household goods after sales.

The surge, which was the largest monthly gain since 1995, was led by construction of single-family dwellings, which rose 18.2% to a rate of 1.477 million – highest in 24 years.

The rise in housing starts – which were revised to a pace of 1.627 million homes last month – was attributed to historically low mortgage rates.

In other economic news, a report by the Labor Department on initial jobless claims showed an increase of 22,000 – pushing the figure back above 400,000 to 411,000.

The four-week moving average, a statistical device used to take the week-to-week volatility out of the initial claims figures fell to 408,750 from 413,500 last week.

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