Single-family housing starts, which account for the bulk of homebuilding, rose 2.7% to a seasonally adjusted annual rate of 861,000 units last month, the Commerce Department said on Tuesday. Data for February was revised higher to show single-family homebuilding rising to a rate of 838,000 units instead of the previously reported 830,000 unit-pace.
Single-family homebuilding increased 4.4% in the Northeast and soared 23.6% in the Midwest. It advanced 4.8% in the densely populated South, but plunged 16.0% in the West. Single-family housing starts dropped 27.7% on a year-on-year basis in March. There are, however, signs that the housing market is stabilizing at very depressed levels. A survey on Monday showed the National Association of Home Builders/Wells Fargo Housing MarketMortgage rates have retreated from last year's highs, with the rate on the popular 30-year fixed mortgage declining from a peak of 7.08% in early November to 6.27% last week, according to data from mortgage finance agency Freddie Mac.
Starts for housing projects with five units or more decreased 6.7% to a rate of 542,000 units. Multi-family housing construction remains underpinned by demand for rental accommodation. But economists see limited scope for further gains noting an increase in empty apartments.With the decline in multi-family homebuilding offsetting the rise in single-family projects, overall housing starts fell 0.8% to a rate of 1.420 million units last month.