New Home Building Off 3.5%

Construction of new homes fell 3.5% in February, but even with the slight decline, housing activity remained at a strong pace, the government reported today.

The Commerce Department said new homes and apartments were constructed at a seasonally adjusted annual rate of 1.99 million units last month. This level of building activity was the second highest monthly total in the last two years, exceeded only by the 2.06-million-unit pace set in January. The housing industry has been enjoying a boom in recent months, spurred by the lowest mortgage rates in this decade.