http://www.bloomberg.com/apps/news?pid=20601110&sid=aLTmT6l191Bg Aug. 18 (Bloomberg) -- U.S. builders in July probably broke ground on homes at the fastest pace in eight months, a sign the housing market is healing as the economic contraction eases, analysts said before a government report today.Housing starts rose 2.7 percent to an annual rate of 598,000, the third straight increase, according to the median forecast of 69 economists in a Bloomberg News survey. A separate report may show wholesale prices fell in July as weak demand and lower energy costs kept inflation in check.Falling home values and stimulus efforts such as a tax credit for first-time buyers are starting to reverse the housing meltdown that triggered the financial crisis and led to the worst recession since the Great Depression. While growth is forecast to resume this quarter, foreclosures, tight credit and job losses will temper the recovery.“The rebound in housing starts has legs,” said Patrick Newport, an economist at Lexington, Massachusetts-based IHS Global Insight. “Residential construction will show some very strong numbers in coming months and won’t be a drag any further. If it weren’t for foreclosures, builders would be putting up more homes.”The Commerce Department’s report is due at 8:30 a.m. in Washington. Projections in the Bloomberg survey ranged from 542,000 to 646,000, after a 582,000 pace in June.
