The beginning of construction of houses in the U.S. rose less than expected in August amid a sharp slowdown in the multifamily sector , according to data released Wednesday by the Commerce Department data.
However, a sharp rise in permits for single-family homes aimed at strengthening sustained recovery in the labor market.
The beginnings of home construction rose 0.9 % in August to a seasonally adjusted annual rate of 891,000 units. The early July were revised downward to show a rate of 883,000 units instead of the previously reported 896,000 .
The beginnings of multifamily dwellings fell 11.1 % to 263,000 units in August . The beginnings of single family homes, which are the largest segment of the market, rose 7.0 % to a rate of 628,000 units , the highest since February.
The drop in multifamily housing starts could be the result of a rise in mortgage rates , which could make developers are more cautious in undertaking new projects.
The largest mortgage rates have slowed the pace of home sales, but is expected to boost demand for new housing residential construction.
Mortgage rates have risen to expectations that the Federal Reserve reduced purchases of bonds 85,000 million hits monthly to keep rates low .
Economists believe the Fed will make an announcement on the future of the program after a meeting on Wednesday, two days.
Permits to build new homes fell 3.8 % in August, at a rate of 918,000 units. Analysts had expected permits, preceding the beginning of construction in at least a month , mostly not change at a rate of 950,000 units.
All the pressure came last month multifamily sector , where permits fell 15.7% . Permits for single-family home construction , meanwhile, rose 3 % , to its highest level since May 2008.
Overall, the early works in homes and apartments last August were 19% above the rate of August 2012.
Permits for buildings with at least five apartments fell 15.7 % , while permits for single-family homes rose 3 percent.