Home construction rose 4.9% in October as home building remains as one of the bright spots of the economy.

The increase pushed home construction to a seasonally adjusted annual rate of 1.53 million homes and apartments and followed a more modest gain of 1.9% in September.

Building permits, a good barometer of future activity, remained at a seasonally adjusted rate of 1.55 million annualized units, effectively unchanged from September. The figure remains up 2.8% from a year earlier, showing how strong the housing market was over the summer despite the pandemic.

�Strong demand, low inventory, and record levels of homebuilder confidence continue to support new home construction,� wrote Nancy Vanden Houten, an economist with Oxford Economics.

Several reports over the last two months have shown the housing market cooling off after a tremendous summer, but that is not surprising. The fall and winter are typically slow times for home buying and home construction, mostly due to the weather.

(AP)