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Housing starts rose 8.3 percent in June to a seasonally adjusted annual rate of 1.215 million, and NAFCU Chief Economist and Director of Research Curt Long expects strong growth for the housing market in coming months.

Housing starts, the Commerce Department's measure of new construction projects, rose 6.3% in June for single-family construction and increased 13.3 percent from May for multifamily construction. Permits last month were up 13.9 percent for buildings with multiple units and 4.1 percent for single-family homes.

"Residential housing construction took a turn for the better in June, with starts, permits, and completions each showing healthy gains," said Long. "Housing demand is strong, and an increase in construction should help ease supply constraints that have developed in many markets. NAFCU anticipates strong growth in housing starts over the second half of the year."

Another indication suggesting strong growth in the coming months is the increased pace of residential building permits, which rose 7.4 percent to an annual pace of 1.254 million in June. That was the largest one-month jump since November 2015.