Construction spending rose 0.7 percent in January as low mortgage rates bolstered home building and nonresidential construction climbed to the highest level in more than two years, the Commerce Department reported Tuesday.

The increase pushed total construction activity to a record high of $1.05 trillion at a seasonally adjusted annual rate and followed an even larger 1.2 percent rise in December.

The strength in January reflected a 0.6 percent increase in private construction, which included a 0.4 percent rise in residential activity and a 1.2 percent jump in nonresidential building. Government construction rose 0.8 percent in January.