Aug. 19?EUR??,,????'??+New private housing construction starts in July, at a seasonally-adjusted rate of 1,803,000, reached a 17-year high, according to the U.S. Department of Commerce. Despite rising mortgage rates, private housing starts rose 1.5% from June, 12.4% higher than the previous year. This came as a surprise in the face of mortgage rates that rose one point from June to July. Mortgage rates had been at a forty-year low in mid-June, with the 30-year loan rate dipping to 5.21%. However, rates rose so quickly that some lenders were unable to secure the record-low rate in time, leaving borrowers paying more. Consequently, the number of housing units authorized in permit-issuing places dropped 2.4%, from 1,823,000 units in June to 1,780,000 units in July. New home permits issued in July numbered 178,200, 3.3% less than June?EUR??,,????'???s 184,300, leaving open the question of how housing completions will fare in August. Single-family homes seem to be displacing apartments. Consistently higher rates of single-family homes were started, completed, and issued permits for construction than the freefalling number of apartments. While single-family housing starts floated up 1.9% from June, apartment construction starts lowered 1.8% in the same period. A downward trend is apparent in the July building of apartments. The 280,000 permits issued in July were 12.2% lower than the 319,000 issued in June, and 22.2% below the 360,000 permits issued last July. The number of apartment issued permits, construction not started, dropped 9.8% from June; and completed apartments were down 26.2% from June. However, the rate of apartments under construction during July was up 1.0% from June. Seasonally Adjusted Rates New Privately-Owned Housing Units Authorized in Permit-Issuing Places

Units	Number in Thousand of Units	% Change from May ?EUR??,,????'???03	% Change from June ?EUR??,,????'???02
Total Homes	1780	-2.4	+2.2
1 Unit	1423	-0.3	+8.5
2-4 Units	77	0.0	+10.0
5+ Units	280	-12.2	-22.2

New Privately-Owned Housing Units Authorized, but Not Started

Units	Number in Thousands of Units	% Change from May ?EUR??,,????'???03	% Change from June ?EUR??,,????'???02
Total	178.2	-3.3	+26.6
1 Unit	115.1	+0.2	+26.9
2-4 Units	6.2	-0.8	+28.3
5+ Units	57.0	-9.8	+25.9

New Privately-Owned Housing Units Started

Units	Number in Thousands of Units	% Change from May ?EUR??,,????'???03	% Change from June ?EUR??,,????'???02
Total	1872	+1.5	+12.4

New Privately-Owned Housing Units Under Construction at End of Period

Units	Number in Thousands of Units	% Change from May ?EUR??,,????'???03	% Change from June ?EUR??,,????'???02
Total	1067	+0.8	+4.2

New Privately-Owned Housing Units Completed

Units	Number in Thousands of Units	% Change from May ?EUR??,,????'???03	% Change from June ?EUR??,,????'???02
Total	1671	-0.4	+3.7