HOUSING STARTS ARE UP BY 2.9%
Surprising even their own trade group, American builders began work on new houses and apartments in February at an annual rate of 1.76 million units, the highest level since 1979, the Commerce Department reported today. The February figure, which was 2.9 percent above January's rate of housing starts, was the latest indication of the growing strength in the housing sector that is a major reason for the economic recovery now getting under way. Analysts attributed the strength to lower mortgage interest rates. Building Permits Up 1% The Commerce Department also said that building permits for future construction rose 1 percent in February from January's level, to an annual rate of 1.49 million, indicating that housing starts will remain strong in coming months. Both the housing starts rate and the permits rate were the highest since since September 1979. Permits had risen 13.3 percent in January.

