(Bloomberg) -- U.S. home construction starts increased in July by more than forecast, indicating builders are responding to robust housing demand fueled by record-low interest rates.
Residential starts jumped by 22.6%, the most since October 2016, to an 1.5 million annualized rate from a month earlier, according to a government report released Tuesday. That compared with the median forecast in a Bloomberg survey of 1.25 million and followed an upwardly revised 1.22 million in June.
Applications to build, a proxy for future construction, increased 18.8% to a 1.5 million rate, topping the median estimate for 1.33 million.
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