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Home Construction Jumps, Even As Housing Market Cools

New data from the Commerce Department on home construction shows new construction climbed more than 15 percent in July from the previous month, and applications for building permits jumped 8 percent.

Home sales are down in the U.S., surprising many economists who predicted an improved housing market would help spur the economy. Foreclosures have slowed, and some of the country’s hottest markets have cooled after a two-year rebound. A new Fannie Mae report cut its housing forecasts for this year and next.

Cardiff Garcia of the Financial Times talks with Here & Now’s Jeremy Hobson about the forces driving the housing ups and downs.

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