Housing Construction Up 7.2%

Housing construction jumped 7.2% in October, the biggest increase in eight months, the government reported today.

The Commerce Department said new homes and apartments were built at a seasonally adjusted annual rate of 1.55 million units last month, up from a 1.45 million rate in September. All regions of the nation except the Northeast posted gains, it said. The huge increase followed a revised 0.8% decline in September and a 1.1% drop in August. The increase last month can be explained at least in part by mortgage interest rates, which fell steadily from mid-August through early November, but have since started to creep higher.