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US housing construction drops 16 percent in January with much of weakness weather related

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In this Friday, Jan. 10, 2014, photo, Paquale Cocca installs a new electrical box on a new home, in Pepper Pike, Ohio. The Commerce Department releases housing starts for January on Wednesday, Feb. 19, 2014. (AP Photo/Tony Dejak)The Associated Press

U.S. home construction fell in January for a second month but the weakness in both months reflected severe winter weather in many parts of the country. The expectation is that housing will deliver another year of solid gains, helped by an improving economy.

The Commerce Department says builders started work at a seasonally adjusted annual rate of 880,000, down 16 percent from December. In December, construction had fallen 4.8 percent. The declines in both months were blamed largely on the weather.

Applications for building permits fell in January for a third month, dropping 5.4 percent to a rate of 937,000.

For all of 2013, housing construction rose 17.7 percent to 976,000 units, the best showing since 2007. Analysts expect further gains this year as stronger job growth boosts demand.

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Loan Type Graph Rate +/- Last Week
30 Y Fixed Graph 4.28% dw 4.30%  
15 Y Fixed Graph 3.24% up 3.18%  
30 Y Fixed Jumbo Graph 4.55% dw 4.58%  
5/1 ARM Graph 3.41% dw 3.53%  
5/1 Jumbo ARM Graph 3.55% dw 3.59%  
Loan Type Graph Rate +/- Last Week
$30K HELOC Graph 4.36% up 4.34%  
$50K HELOC Graph 4.06% -- 4.06%  
$30K Loan Graph 5.07% up 4.98%  
$50K Loan Graph 4.51% up 4.39%  
$75K Loan Graph 4.51% up 4.39%  
Loan Type Graph Rate +/- Last Week
36 M New Graph 2.92% up 2.91%  
36 M Used Graph 3.43% up 3.42%  
48 M New Graph 3.18% up 3.17%  
48 M Used Graph 2.92% -- 2.92%  
60 M New Graph 3.19% up 3.18%  
Loan Type Graph Yield +/- Last Week
6 month Graph 0.35% up 0.34%  
1 yr Graph 0.66% -- 0.66%  
5 yr Graph 1.35% up 1.34%