WASHINGTON - Groundbreaking for new U.S. home construction dropped 5.9% to a seasonally adjusted annual rate of 575,000 in February, as building permits decreased by 1.6% to 612,000, the Commerce Department reported today.
The monthly drop in housing starts was the greatest decline since a 10.6% October decrease.
Economists had expected housing starts to decrease to an annual rate of 570,000 and for building permits to hit 610,000, according to the median estimate from Thomson Reuters.
February’s 575,000 housing-starts rate follows an upwardly revised 611,000 rate the previous month, initially reported as 591,000. The 612,000 permit rate in February follows January’s slightly revised 622,000 figure that was initially reported as 621,000.
Housing starts increased 0.2% since February 2009, while building permits rose 11.3% during the same year-to-year period.
