New residential construction rose 4.9% to 1,530,000 units at the annual rate in October, the strongest pace since February. The data were buoyed by continued strength in the single-family segment, which increased to 1,179,000 units, the best reading since April 2007. Americans have responded to historically low mortgage rates, which hit another record low last.. Other data also reflected strength and optimism in the housing market, including the following:

o Housing permits were flat at 1,545,000 units in October, remaining the strongest pace since March 2007 and pointing to solid growth over the coming months.

o For their part, builders also feel more upbeat in their expectations for single-family sales over the next six months, with sentiment reaching another all-time high in November.