Housing Starts Surge in June, Permits Dip

Washington, DC, July 18, 2012 -- Housing starts rose more than expected in June to the fastest pace since October 2008, according to the Commerce Department.

Housing starts rose 6.9% last month to a 760,000 annual pace after a revised 711,000 rate in May that was better than initially estimated.

New construction of single-family homes, which account for three-quarters of the housing market, climbed 4.7% to an annual rate of 539,000. Construction of single-family homes is 21.7% higher compared with a year ago.

Economists called for an overall 745,000 rate.

Building permits dropped 3.7% to an annual rate of 755,000 from 784,000 in May, reflecting a drop in applications for apartment construction.