Single-family housing starts rose in May for the third straight month, fresh evidence the beleaguered housing market is beginning to stabilize. But the glut of homes in parts of the country will continue to drag down prices.
Home builders saw their shares surge Tuesday after the government reported housing starts leapt by more than 17% in May. (June 16)
Meanwhile, another steep decline in industrial output served as a sober reminder that even if the 18-month-old recession is losing some steam, it shows no sign of actually ending, and a return to rapid expansion is unlikely for many months at least.
Housing starts jumped 17.2% in May from April to a 532,000 annual rate, the Commerce Department said Tuesday, boosted by an increase in multifamily units.
Single-family starts — a less-volatile reading on housing trends — rose 7.5% from April. Building permits rose as well.
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