Housing starts drop, sector still healthy

WASHINGTON — The number of housing projects builders broke ground on dipped in April, but even with the decline the level of activity still suggested that the residential construction sector of the economy remains healthy.

The Commerce Department reported Tuesday that the number of residential units under way clocked in at a seasonally adjusted annual rate of 1.97 million, representing a 2.1 percent decline from March.

The slowdown came after a brisk March, where builders broke ground on 2.01 million units, on an annualized basis, according to revised figures.

With mortgages rates on the rise, economists expect the housing market to cool a bit this year from what has been red-hot activity seen over the last several years. But analysts still expect the housing market to remain in good shape.