Washington ? Housing construction jumped to a 17-year high in July in spite of rising interest rates. It was an unexpectedly strong showing and one more sign, analysts said, that the long-craved economic rebound may finally be happening.

The Commerce Department reported Tuesday that construction of new homes and apartments rose by 1.5 percent in July over the previous month to a seasonally-adjusted annual rate of 1.87 million units.

It was the highest level for housing construction since April 1986 and was a better performance than many analysts expected, given that June had been a strong month and mortgage rates have been rising in recent weeks.

After hitting a low of 5.21 percent in mid-June, rates for 30-year mortgages have risen by a full percentage point to stand at 6.24 percent last week, according to Freddie Mac’s nationwide survey.

Some analysts saw the July jump in construction as an effort by builders to get houses on the market before mortgage rates move even higher and dampen demand.

“The push to complete homes before mortgage rates slow the market is on, and builders are going wild,” said economist Joel Naroff of Holland, Pa.

The surprisingly strong showing in housing was the latest in a string of better-than-expected economic reports in recent days, including a solid gain in orders to U.S. factories and a surge in retail sales in July.

“These numbers suggest that the economy is indeed beginning to accelerate from an extended period of sluggishness,” said Lynn Reaser, chief economist at Banc of America Capital Management.

While recent signs have been positive, analysts caution that there are still a number of threats, from rising long-term interest rates to geopolitical risks overseas.

Eddie Garlick, of Philadelphia, drives a nail into a supporting beam while working on a new home in Philadelphia. New home construction reached a 17-year high in July.