July 17 - Groundbreaking on new U.S. homes surprisingly tumbled to 836,000 in June, a seasonally adjusted drop of 9.9 percent, but there is little to worry about the housing recovery. Conway G. Gittens reports.
The Daily Digit is 836,000. The number of new home construction projects in the U.S. dropped nearly 10 percent to 836,000 in June. While that surprise slowdown to a 10-month low, adds to signs the U.S. economy slowed dramatically at the end of last quarter, a deeper look at the numbers suggest the housing recovery remains on track. Why? The big reason for the slide is tied to multi-family dwellings. That's right - construction on buildings largely used for apartment rentals - tumbled, but that segment of housing is notoriously volatile and is less important than single-family housing, where the drop was not even one percent. Also keep in mind, a recent survey from the National Association of Home Builders jumped to a 7-1/2 year high, mortgage rates have stabilized after a spike last month, and Federal Reserve Chairman Ben Bernanke says the Fed won't be hiking its key lending rate anytime soon.