Home Construction Climbs 2.4% in July; New Permits Decline
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WASHINGTON — Housing construction climbed 2.4% in July, but building permits for future construction fell at the sharpest rate since January as interest rates began rising, the government reported today.
The Commerce Department said homes and apartments were being built at an annual rate of 1.49 million units in July. It was the second consecutive monthly increase following a 4.4% rise in June.
However, building permits dropped 5.4% last month, apparently stemming from the fact that mortgage rates have been rising.
Many economists are predicting that 30-year, fixed-rate mortgages will soon top 11%. They have already risen to a national average of 10.57%.
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