Washington, GA, Apr. 16--Housing starts rebounded unexpectedly strongly in March from a big drop in February, as persistently low mortgage rates maintained their appeal to homebuyers.
But permits, an indicator of builder confidence in future sales, fell a greater than expected 7% in March, their biggest decline since March 2002, according to the Commerce Department.
Groundbreaking for new homes climbed 8.3%, the largest rise since September, to a seasonally adjusted 1.780 million unit annual rate from an upwardly revised 1.644 million clip in February. Permits dipped to a seasonally adjusted annual 1.685 million pace from an upwardly revised 1.811 million rate the month before.
Housing starts beat the expectations of analysts, who had forecast a 1.694 million pace. Permits fell short of expectations of a 1.741 million pace.
Starts rose in all regions of the country but the West, climbing 9.8% in the Northeast, 25.4% in the Midwest, and 9.4% in the South, the busiest area for new home building. In the West, groundbreaking for new homes fell 4.5%.
However, permits were down in every region but the Midwest, and posted their biggest decline in the West since March 1995, a slide of 18.5%.
