America's housing starts spike to 12-year high in August

Housing starts spiked 12.3% in August to a seasonally adjusted annual rate of 1.364 million and the pace for July was revised downward, according to the Department of Housing and Urban Development and the Department of Commerce. Augusts housing starts are now 6.6% above last year’s rate of 1.279 million. Low mortgage rates and the strong job market convinced homebuilders to ramp up production in August. Housing starts surged to the fastest pace since 2007, as both single-family and multifamily segments saw sizable gains, said Mortgage Bankers Association Vice President of Economic and Industry Forecasting Joel Kan.