U.S. residential construction spending rose in July, though at a slower pace than in the prior month, as booming demand and rising prices continued to buoy the housing market. The Commerce Department said in a Sept. 1 report (pdf) that U.S. residential construction spending rose 0.5 percent in July, after advancing 0.8 percent in June. “Home builders have been racing to catch up with demand but have been bogged down by shortages of key raw materials and labor,” Wells Fargo analysts wrote in an analytical note (pdf). Much of the strength in the Commerce Department’s report came from single-family home construction outlays, which advanced by nearly 0.9 percent over the month in July. While a solid showing, the pace of growth was slower than in the May–June period, when single-family home construction spending advanced by 2 percent over the month. “The strength in single-family spending and some upward revisions to all …