Spending on private residential construction rose by 0.6% in July to a seasonally adjusted rate of $335 billion, the highest in almost five years, Dow Jones Business News reports.
The numbers suggest that builders aren’t as worried about higher interest rates for mortgages as analysts had thought, according to the report. The average rate for a 30-year fixed mortgage rose to 4.8% at the end of August, and rising rates were earlier blamed for a 2.2% drop in July for single-family home starts.
July’s spending hike was small, but the report also said that June’s spending report was revised upward, from a 0.1% decline to an increase of 0.4%.
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