WASHINGTON - Home builders, aided by low interest rates, broke ground in February on the largest number of projects since the end of 1998, providing more momentum for the country's recovery from a recession. <br>
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Construction of new homes and apartments climbed to a seasonally adjusted annual rate of 1.77 million, a 2.8 percent increase over January's level, the Commerce Department reported Wednesday. <br>
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The bigger-than-expected increase pushed housing construction to its highest level since December 1998 and followed a strong 7.4 percent advance in January, even bigger than the government previously reported. <br>
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Low interest rates have helped the housing and construction market thrive even while the country suffered through a recession that began last March, economists say. <br>
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With Federal Reserve Chairman Alan Greenspan and his colleagues expressing more optimisim Tuesday that the country is bouncing back nicely from the downturn, many economists believe short-term interest rates will move higher this year. <br>
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Still, Fed policy-makers on Tuesday opted to hold rates steady, allowing Americans to continue to enjoy some of the lowerst rates seen in four decades.
