Housing starts hit four-year high in October

Housing starts rose 3.6 percent from September to October, according to USA Today. Construction increased to a seasonally adjusted annual rate of 894,000 compared with 872,000 in September; this is the highest pace of new-home construction since July 2008.

Additionally, single-family construction starts basically were unchanged, and building permit applications, which are viewed as a barometer of future construction, fell 2.7 percent in October. Multifamily construction starts grew 11.9 percent.

Buyers' improving confidence and optimism because of low mortgage rates reportedly are helping to revive the housing market. And builder confidence has risen to its highest level in six and a half years.

Housing starts are 87 percent above the annual rate of 478,000 in April 2009, which was the recession low. However, a 1.5 million annual rate still is needed to be considered healthy.

Date : 11/30/2012