Good News, Housing Starts | featured news

The rebound in the U.S. housing market accelerated in August as residential construction starts increased 2.3% and sales of existing homes rose 7.8%, according to new figures released Wednesday.

Groundbreaking on new homes rose in June to its fastest pace in over three years, lending a helping hand to an economy that has shown worrisome signs of cooling. The Commerce Department said on Wednesday that housing starts rose 6.9 percent last month to a seasonally adjusted annual rate of 760,000 units. That was the highest rate since October 2008.

Housing starts and permits for future construction jumped to a 1-1/2 year high in November as demand for rental apartments rose, suggesting the housing market was starting to recover.

U.S. housing starts rose more than expected in March to their highest level since November 2008 and permits to build new homes scaled a 17- month high.