Home Construction Starts Down, Permits Rise

Washington, DC, March 20, 2012 -- Home construction starts fell 1.1% in February to an annual rate of 698,000, but permits rose 5.1%, the Commerce Department said.

Housing starts in January were revised up to 706,000 from an original reading of 699,000.

Economists had expected housing starts in February to rise to an annual rate of 706,000 on a seasonally adjusted basis.

Permits for new construction increased to an annual rate of 717,000 from 682,000 in January. That's the highest level of permits since the middle of the last recession in October 2008.

Permits for single-family homes, which account for three-quarters of the housing market, rose 4.9% to an annual rate of 472,000 last month.