By Ruth Mantell
WASHINGTON (MarketWatch) -- New construction of U.S. houses rose 1.5% in January, reaching a seasonally adjusted annual rate of 699,000, according to a Thursday estimate from the Census Bureau and the Department of Housing and Urban Development. Economists polled by MarketWatch had expected a rate of 688,000 housing starts for January, with unseasonably warm weather boosting results. In December the rate reached 689,000, compared with a prior estimate of 657,000. Single-family housing starts fell 1% in January to a rate of 508,000. Meanwhile, starts in buildings with at least five units rose 14.4% to a rate of 175,000. Despite some gains, analysts note that housing data remains at relatively low levels, and the market faces a lengthy recovery.
