Economics

U.S. Home Starts Top Forecasts, Permits Highest Since 2007

Workers nail in wall studs to a stairway inside a home under construction in Ellenton, Florida.Photographer: Ty Wright/Bloomberg
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Construction of new U.S. homes increased more than forecast in November and permits to build climbed to a 12-year high as the housing-market strengthened amid low mortgage rates, solid job growth, and optimistic buyers and builders.

Residential starts rose 3.2% to a three-month high 1.37 million annualized rate after an upwardly revised 1.32 million pace in the prior month, according to government figures released Tuesday. Permits, a proxy for future construction, increased 1.4% to an annualized 1.48 million pace. Stocks and the dollar rose after the report and another that showed stronger-than-expected factory output in November.