AlQa'dah 12, 1434, Sep 18, 2013, SPA -- U.S. housing starts rose less than expected in August as a sharp slowdown in apartment building nearly offset groundbreaking on the most single-family homes in six months, the government reported Wednesday, indicating a sustained housing-market recovery that is helping the broader economy despite higher mortgage rates. The Commerce Department said housing starts increased 0.9 percent to an annual rate of 891,000 units. Starts for single-family homes - the largest segment in the market - jumped 7 percent to a rate of 628,000, the most since February. Starts for apartments fell 11.1 percent to a 263,000-unit rate. The drop in apartment starts - usually a volatile category - could be the result of a spike in mortgage rates, which might be making developers cautious about beginning new projects. Higher borrowing costs have slowed the pace of home sales, but demand for housing is expected to support residential construction. Permits to build homes - a gauge of future construction activity - fell 3.8 percent in August to a rate of 918,000 units. The decline was due to the apartment sector, where permits plunged 15.7 percent. But permits for single-family homes rose 3 percent to their highest level since mid-2008.
