Builders camped up construction of single family homes, more evidence of an economy going full steam ahead. Bobbi Rebell reports.
Builders are ramping up construction of new homes- driving U.S. housing starts up almost 13 percent to a near eight-year high in July. Housing starts have now been above the one million unit pace for four straight months. While building permits fell 16 percent in July that followed three straight months of hefty increases The news comes on top of recent solid reports on payrolls, retail sales and industrial output data- all suggesting the third quarter is off to a strong start. That's providing continued support for a rate hike at the Federal Reserve's next meeting in September. Those odds are high in light of the recent strong pace of housing starts, says Decision Economic's Cary Leahey. "I think right now the analytical community says the chances are probably 2 out of 3 or 3 out of 4 that they will go. Among traders its probably at best one out of 2 there." The news helping to lift housing stocks including Lennar and Toll Brothers. Also benefiting from improving housing- Home Depot. The home improvement retailer raised its 2015 profit outlook for the second time this year.