BUSINESS MEMO: HOUSING CONSTRUCTION

Housing construction sprinted ahead in January to the highest level in a year, suggesting rising mortgage rates have yet to sideline confident consumers, economists said.

Aided by mild weather early in the month, builders began work on new units at a seasonally adjusted annual rate of 1.78 million, a 1.5 percent increase from December, the Commerce Department said Wednesday. That marked the highest level since January 1999 when 1.80 million units were started.

The increase surprised many analysts who predicted housing starts would fall given the upswing in mortgage rates and the harsh weather that raked parts of the country late in the month.