WASHINGTON (AP) — U.S. homebuilders ramped up construction in April to the fastest pace in nearly seven-and-a-half years, providing newfound momentum for an economy that has struggled in recent months.
The Commerce Department said Tuesday that housing starts last month increased 20.2 percent to a seasonally adjusted annual rate of 1.14 million homes. That pace ranks as the fastest clip since November 2007.
Builders appear to have finally shaken off a turbulent winter that shut down construction sites and hampered growth across the economy. The sharp increase indicates that growth might accelerate after being close to flat in the first quarter. It also suggests that builders are responding to tight inventories of existing homes and buyer demand due to strong hiring over the past year and low mortgage rates.
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