Housing Starts Down but Permits Surge in May

Washington, DC, June 19, 2012 -- Housing starts fell 4.8% in May but permits surged to the highest rate since September of 2008, according to the Commerce Department.

Housing starts were at an annual rate of 708,000, but permits climbed 7.9% to an annual rate of 780,000 from the April rate of 723,000.

Economists had expected starts to total 720,000 on an annualized basis.

April housing starts were revised up to 744,000 from an original reading of 717,000,- the best spurt of construction since October 2008.

Permits for single-family homes, which account for three-quarters of the housing market, rose 4% to an annual rate of 494,000 last month. That's the highest level since March 2010.