Housing starts dip 3.6% in January, but permits hit 13-year high

WASHINGTON (MarketWatch) - Construction on new homes slipped 3.6% in January, but permits rose to a nearly 13-year high in a sign that builders plan to pick up the pace in the spring. New housing starts slipped as expected last month after a surprising surge at the end of 2019 that pushed housing starts to a 13-year high. Housing starts fell to an annual pace of 1.57 million, the Commerce Department said Wednesday. Economists polled by MarketWatch had forecast a seasonally adjusted 1.43 million rate. Yet permits to build new homes climbed 9.2% to an annual clip of 1.55 million, marking the highest level since March 2007. Both starts and permits are sharply higher compared to one year ago, reflecting a rebound in the housing market tied to tumbling interest rates. For December, housing starts were revised up to a 1.63 million rate from 1.61 million.

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