WASHINGTON–Perhaps in keeping with the weather, new-home construction in the U.S. unexpectedly cooled off during January, with the Commerce Department reporting that housing starts dropped 3.8% to a 1.1 million annualized rate.
That is the slowest rate in three months and down from a 1.14 million pace the prior month, according to the Department.
The data show that all four regions of the U.S. saw a decline in construction, but the East Coast winter storm is most likely responsible for the setback at the end of the month. A strengthening job market is projected to increase housing demand this year, helping offset still-tight credit standards for some prospective buyers, according to the Commerce Department.