January was a good month for home construction. The latest report from the Commerce Department shows national activity is at its highest in six months. General home construction rose 2.8 percent to a seasonally adjusted rate of 591,000 units. The forecasted rate was 580,000. Single-family construction rose 1.5 percent.
The National Association of Home Builders also reported on their housing market index. After two months of decline, the index was raised two points to 17 for February.
Mortgage rates under 5% and a lower unemployment rate in January likely contributed to the increased activity. The government stimulus plan allowing for home buying tax credits have also been a factor.
*Information from MSNBC and CNN.*
