U.S. homes jumped up in September to its fastest pace in more than four years.
According to Reuters, this is a sign that the housing sectors sluggish recovery is getting its mojo back and supporting the wider economic recovery in the process.
Reuters reported that the Commerce Department said housing starts increased 15 percent last month to a seasonally adjusted annual rate of 872,000 units, on Wednesday.
This is the quickest pace the market has seen since July 2008, although this data still needs revision.
"One of the big headwinds for the economy has been the weak housing market and this indicates that headwind has dissipated," said Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Missouri.
The American economy has shown signs of rapid growth these past months, as unemployment rates fell and retail sales data showed strong consumer spending.
Released on Wednesday, the data showed that housing stands out in the economy's recovery, since it was highly affected by the recession.
John Canally, an economist at LPL Financial in Boston, told Reuters that things are lining up for housing.
"It's another step in the right direction, but you still have a long, long way to get back to 'normal' in housing," Canally said.
Building more homes is expected to add more growth and brighten the economy.
Reuters reported, economists estimate that for every new house built, at least three new jobs are created.
More home building can help shell out some of the weakness in the market.
