(RTTNews) - A report released by the Commerce Department on Tuesday showed a substantial rebound in new residential construction in the month of October.
The Commerce Department said housing starts surged up by 3.8 percent to an annual rate of 1.314 million in October after plunging by 7.9 percent to a revised rate of 1.266 million in September.
Economists had expected housing starts to jump by 5.1 percent to a rate of 1.320 million from the 1.256 million originally reported for the previous month.
Despite the notable rebound, housing starts remain below the more than twelve-year high of 1.375 million set in August.
The report said single-family housing starts climbed by 2.0 percent to a rate of 936,000 in October, while multi-family starts surged up by 8.6 percent to a rate of 378,000.
The Commerce Department also said building permits spiked by 5.0 percent to an annual rate of 1.461 million in October after tumbling by 2.4 percent to a revised rate of 1.391 million in September.
Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.385 million from the 1.387 million originally reported for the previous month.
With the unexpected increase, building permits jumped to their highest rate since reaching 1.493 million in May of 2007.
Single-family permits surged up by 3.2 percent to a rate of 909,000, while multi-family permits soared by 8.2 percent to a rate of 552,000.
A separate report released by the National Association of Home Builders showed homebuilder confidence pulled back slightly in the month of November.
The report said the NAHB/Wells Fargo Housing Market Index slipped to 70 in November after climbing to 71 in October. Economists had expected the index to come in unchanged.
The modest decrease came after the housing market index rose for four straight months to reach its highest level since hitting a matching reading in February of 2018.
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