Builders broke ground on new homes in the US at the fastest pace in more than seven years last month as low interest rates boosted demand for houses. The number of new housing units started in July rose 1.5pc from the previous month to an annual rate of 1.872 million units, the highest level since April 1986, the Commerce Department said. Compared to July of last year, housing starts rose 12.4pc.
Single family starts rose 1.9pc in July to 1.521 million units, the highest level since November 1978, while housing starts for multi-family units fell 1.8pc to 319,000 units. The Federal Reserve has cut interest rates 13 times since January 2001, last lowering borrowing costs by 25 basis points to a 45-year low of 1pc in June. It has indicated that rates will remain low for the medium term - which is expected to boost demand for houses. //www.fxcentre.com