WASHINGTON—U.S. single-family homebuilding surged in July and permits for future construction rose amid an acute shortage of previously owned houses, but mortgage rates climbing back to near two-decade highs could slow the housing market improvement.
The sharp rebound in groundbreaking on single-family housing units reported by the Commerce Department on Wednesday was another sign of the economy continuing to defy dire forecasts of a recession. It followed news on Tuesday that retail sales rose strongly in July, which prompted economists to upgrade their growth estimates for the third quarters.
