According to government figures the pace of home building fell in June, mostly due to a drop in multifamily construction, as single-family starts fell one percent from May to June although the rate is still ten percent above year-ago levels. Work began on new homes at a seasonally-adjusted annual rate (SAAR) of 836,000 homes, a drop from 928,000 in May. Building permits also fell, from an SAAR of 985,000 in May to 911,000 in June, but still 16 percent above last June. Analysts attribute the drop in starts and permits to mortgage rates which have been slowly rising for the last ten weeks, although they continue at historically low rates. Still, as CNNMoney informs MHProNews, home prices, home sales and construction continue to be a driving force in the overall economic recovery.

(Photo credit: HousingWire)