WASHINGTON — Housing construction, reflecting lower interest rates, rebounded 7.0% in June after falling for four straight months and reaching the lowest level in May since 1982, the government said today.
Fixed mortgage rates, which peaked at 11.22% in March before falling to 10.07% by the end of June, had been blamed for the recent decline in housing activity.
The Commerce Department reported that new homes and apartments in June were built at a seasonally adjusted annual rate of 1.40 million units, up from 1.31 million units in May when construction fell 2.5%.
June's increase was the highest since an 8.6% hike to 1.51 million units in February, 1988. It reflected a 28% increase in apartment construction, the highest since a 43% increase in April, 1988.