Housing Starts Reach Highest Level in Five Years

Growing demand helps to overcome increases in mortgage rates.

by Myles Biggs

Housing Starts Reach Highest Level in Five Years

Home builders broke ground on more homes in November than at any other time in over five years.

Recent data from the Commerce Department in Washington, revealed that housing starts jumped 22.7 percent to a 1.09 million annualized rate - exceeding all forecasts of economists surveyed by Bloomberg and the most since February 2008.

Additionally, permits for future projects have held near a five-year high, indicating that this housing pickup will continue into 2014.

 As a show of confidence in the U.S. housing market, Federal Reserve officials announced yesterday that they will begin reducing monthly bond purchases to $75 billion from $85 billion as employment, housing and the economy show signs of progress.