By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — New construction of U.S. houses rose in January, according to government data that analysts had expected would be boosted by unseasonably warm weather.
Housing starts for January rose 1.5% to a seasonally adjusted annual rate of 699,000, according to an 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. See economic calendar.
In December the rate reached 689,000, compared with the previously reported 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, continuing the surge in creation of apartment buildings.
Despite some gains, analysts note that housing data remains at relatively low levels, and the market faces a lengthy recovery. Confidence among home builders is the highest in more than four years, but remains under a healthy reading. Read more about builder sentiment.
Elsewhere Thursday, data indicated that foreclosure activity rose 3% in January, but filings are down 19% from the prior year.
According to a report from RealtyTrac, an online marketplace of foreclosure properties, there are signs that the foreclosure process is beginning to get back to normal after a slowdown. Read more about foreclosures.
