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Rise in Housing Starts Boosts Market

Financial News Network
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June 20, 2012 AT 5:58 PM
The Commerce Department reported Tuesday housing starts are up, boosting the stock market and causing optimism among investors.In the month of May, U.S. builders started work on more single-family homes and requested the most permits to build homes and apartments in three and a half years. There was a 3.2% rise in building projects on homes, the third straight month of increases.In terms of permits, those increased to a seasonally adjusted rate of 780,000, the most since September of 2008.These numbers are in line with the increase in the confidence index which we reported on yesterday. The Commerce Department's report could finally mean the start of a true recovery in the housing market, something that hasn't really recovered since the financial crisis in 2008.Markets are up on this news. The S&P and the Nasdaq both up over one percent and the Dow with triple digit gains, currently trading up 122 points.