WASHINGTON, Aug 17 (AFP) - Home building in the United States soared by an unexpectedly steep 8.3 percent in July, recovering from a slump the previous month as weather improved, a government report showed Tuesday.
"After wet weather depressed housing in June, a sunny July helped boost activity in the sector," said Wachovia senior economist Gina Martin.
Builders began work on a seasonally adjusted annual rate of 1.978 million homes in the month, the Commerce Department said.
New home building had plunged to a one-year low in June.
Compared with last year, new house building was up 4.5 percent in July.
Permits authorizing new housing -- a barometer of future activity -- jumped 5.7 percent from June to an annual rate of 2.06 million homes in July. Compared with a year ago, permits were up 8.6 percent.
"Housing starts and permits jumped in July, after wet weather caused a relatively depressed June for each series," Martin said.
"With permits up and interest rates low, indications are for this strength to continue into the autumn months."
Interest rates were "picture perfect" for strength in housing this autumn, she said.
According to mortgage wholesaler Freddie Mac, the average fixed rate 30-year mortgage was now 5.85 percent.