For the first two months of the year, permit activity is up 11 percent compared to 2002. February's gain also marked the ninth straight positive month for single-family construction permits. The last time the metro area failed to beat year-over-year totals for a month was last May when 848 permits were issued, less than 3 percent shy of the total from May 2001.

HBA Executive Vice President Tim Underwood said residential construction continues to be fueled by favorable mortgage rates. According to Freddie Mac, the national average for a 30-year-fixed-rate mortgage rose to 5.79 percent this week, up from a record-low 5.61 percent before war broke out with Iraq. Freddie Mac has charted a new record-low for mortgage rates five times this year.

"New home construction remains one of the brightest areas of the local economy," Underwood said. "The Federal Reserve Board's decision last week to leave interest rates unchanged should help keep the housing market stable despite uncertainties due to the war with Iraq."

Underwood noted that home builders will continue to keep a close eye on new home inventory, which has increased steadily due in large part to mild fall and winter building seasons. Market research suggests that oversupply situations are limited to isolated areas and specific price ranges.

"Builders will be keeping a close eye on inventory and the economy in the next few weeks," Underwood said. "We will be watching closely how prospective new home buyers react to the war with Iraq."

Kansas City, Mo., leads the metropolitan area in single-family permits issued year-to-date with 257. Olathe ranked second with 157 permits, followed by Overland Park with 131 permits.

Rounding out the top-permitting cities for January were Lee's Summit, 111; Shawnee, 80; Raymore, 64; Grain Valley, 61; Independence, 47; Lenexa, 37; and Gardner, 36.

The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes more than $2.5 billion to the Kansas City economy and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.