Boost for the US housing market

US housing starts increased more than expected in August to their highest level in four months, data from the Commerce Department showed yesterday. Housing starts rose 10.5 per cent last month, the largest increase since November, to a seasonally-adjusted rate of 598,000 units. Compared to last year, the figure has risen by 2.2 per cent, suggesting the housing market is starting to stabilise following the end of tax credits for home buyers in April.