WASHINGTON — US developers broke ground on new homes at a faster pace in July. But the rise was all due to apartment construction, which is typically volatile. By contrast, builders began work on fewer single-family homes — the bulk of the market — and sought fewer permits to build them.
Friday’s report from the Commerce Department suggests that home building is maintaining its recovery but might be starting to feel the effects of higher mortgage rates.
Last month, builders began work last month on houses and apartments at a seasonally adjusted annual rate of 896,000, the Commerce Department said. That was up 6 percent from June, though below a recent peak of just over 1 million in March. Construction began on 26 percent more apartments but 2.2 percent fewer single-family houses. Full story for BostonGlobe.com subscribers.