Housing starts surged to its highest monthly mark in over 25 years. The January tally of 2.159 million is 5% above the prior month's figure. Single-family units rose significantly to 1.76 million (an all-time high) from 1.71 million unit pace in the prior month. Multifamily unit starts made gains as well to 399,000 units. Multifamily units starts are begining to show positive traction after bouncing around a historic low end in the past three years. Housing starts are known for data volatility on a month-to-month basis, particularly during the colder months. January data could partly reflect the atypical warmer temperatures across the country in January. Home price appreciation has been continuing to run strong. That's a price signal to increase supply to alleviate to housing shortage problems. The permits, which precede starts, were above 2.1 million for only the second time since the early 1970s, implying continued strength in the new construction sector in the near term. But for the year as a whole 2005, there will be a slight retreat. Interest rates are expected to be higher, which will rein in home buying enthusiasm.