US homebuilders likely increased housing starts in July

Economists polled by MarketWatch had expected starts to total a seasonally adjusted 1.19 million.

Still, overall permits are 7.5% higher compared to one year ago.

Meanwhile, the report said building permits, an indicator of future housing demand, plunged 16.3% to an annual rate of 1.119 million in July after jumping to an eight-year high of 1.337 million in June. Construction of single-family houses accounted for all of the gains, shooting up 12.8 percent last month to the highest rate since December 2007.

Home-construction figures are volatile and often revised.

In this photo taken Tuesday, June 9, 2015, a roofer works on a home…

But the report also showed the potential limits of new construction as affordability pressures are multiplying in an economy with solid job growth but meager pay raises.

Simply.S. own home enthusiasts also appear more cheerful and this month. Permits for single-family units fell 1.9 percent to a rate of 679,000, while multi-family permits were at a rate of 412,000.

S. home building ticked up in July thanks to a surge in construction of single-family homes, the latest sign of momentum in the housing market.

Builders are breaking ground on more apartment complexes.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday reached 61 this month, up from 60 in July.

Federal Reserve Chairwoman Janet Yellen told lawmakers last month population growth is creating a need for more housing, but activity in the housing sector “seems likely to improve only gradually”.

The robust housing report surpassed Wall Street expectations. After months of characterizing the housing recovery as “slow”, they said the sector showed “some improvement” in June and “additional improvement” in July.