A good economic indicator—housing starts—showed signs of big promises in July as groundbreaking surged 15.7 percent, representing an annual pace of 1,090,000 units. The rebound suggested the housing market recovery was back on track after stalling earlier this year.
Bloomberg News reports that July's housing starts exceed its estimates in a survey of economists, whose median projection called for about 960,000 units.
This morning, those same economists pointed to a strengthening job market and more competitive borrowing costs in reviving the construction industry.
"The long-term recovery has good fundamental footing behind it," economist Tom Simons told Bloomberg. "There's definitely some demand still to come after periods of depressed sales."
In particular, single-family homes rose 8.3 percent in July, the fastest rate this year. Multifamily projects, such as condos and apartments, rose a whopping 28.9 percent.