April Housing Starts Higher Than Expected

Washington, DC, May 16, 2012 -- House construction starts rose 2.6% in April to an annual rate of 717,000 units, although permits fell 7% to 715,000, according to the Commerce Department.

Economists had expected housing starts in April to rise to 690,000 on a seasonally adjusted basis.

Housing starts in March were also revised up to 699,000 from 654,000, while permits were revised up to 769,000, the highest level since September 2008, from an initial reading of 747,000.

In April, permits for single-family homes, which account for three-quarters of the housing market, edged up 1.9% to an annual rate of 475,000.