By THE
ASSOCIATED PRESS – September 19, 2000
WASHINGTON
(AP) -- Housing construction rose modestly in August, with all the strength
coming from a big jump in single-family-home projects. Construction of apartments
and condos fell sharply. The Commerce Department reported Tuesday that builders
began work on new homes at a seasonally adjusted annual rate of 1.53 million
last month, a 0.3 percent increase from July.
The August increase was smaller than many analysts anticipated. In July, housing construction fell by 2.9
percent.
The Federal
Reserve has boosted interest rates six times since June 1999 to slow the
economy and keep inflation under control. A spate of economic reports have
suggested the economy is moderating from its frenzied pace. Given that, many
analysts believe the Fed is through raising rates for this year.
Housing
construction has been an engine of the vibrant economy and even with higher
interest rates, activity has remained healthy. In August, the average rate on
30-year fixed-rate mortgages eased from the month before but was still
considerably higher than the average rate for August 1999.
In the
South, housing starts rose 6.4 percent to a seasonally adjusted annual rate of
712,000. In the Northeast, they grew by 1.4 percent to a rate of 145,000. But
in the Midwest and in the West, housing construction declined by 5.6 percent to
304,000 and 370,000 respectively.
See Rise