U.S. housing starts increase more than expected in November

The Commerce Department reported on Tuesday the building permits issued for privately owned housing units rose by 1.4 percent m-o-m in November to a seasonally adjusted annual pace of 1.482 million (the highest level since May 2007), while housing starts jumped by 3.2 percent m-o-m to an annual rate of 1.365 million.

Economists had forecast housing starts increasing to a pace of 1.345 million units last month and building permits falling to a pace of 1.410 million units.

Data for October was revised to show homebuilding growing to a pace of 1.323 million units, instead of increasing at a rate of 1.314 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, increased 0.8 percent m-o-m at 918,000 in November (the highest since July 2007), while approvals for the multi-family homes segment climbed 2.5 percent m-o-m to a 564,000 unit-rate.

In the meantime, groundbreaking on single-family homes rose 2.4 percent m-o-m to a rate of 938,000 units in November (the highest level since January), while housing starts for the multi-family surged 4.9 percent m-o-m to a 427,000 -unit pace.