Home Construction Up 15.7%

Construction of new homes surged 15.7% in January, the biggest jump in almost two years, the government reported today.

The Commerce Department said the sharp increase, following a strong 9% December gain, was fueled in large part by the fact that fixed-rate, 25- to 30-year mortgages now are averaging around 10.75%, the lowest rate in almost seven years. The construction rise was the healthiest since a 17% jump in housing starts in February, 1984.