Groundbreaking for new U.S. home construction slumped in June, plunging 9.9% to a seasonally adjusted annual rate of 836,000 units as building permits dropped 7.5% to an annual rate of 911,000 units, according to Commerce Department data released Wednesday.

The rate for housing starts missed the 960,000 level predicted by Thomson Reuters' poll of economists. Thomson had projected a 1,000,000 rate for permits.

The 9.9% decrease in starts follows an 8.9% gain in May to 928,000 units, originally reported as a 6.8% rise to 914,000 units. In May, permits were off 2.0% to 985,000 units, first reported as a 3.1% slide to 974,000.

Year-over-year housing starts were up 10.4% from a year ago, when 757,000 units were started. The permits figure was 16.1% better than the year-ago rate of 785,000.

In the regions, home starts in the midwest slipped 7.4% to 126,000. In the northeast sales dropped 12.1% to a 94,000 rate. In the west, starts dipped 5.4% to 192,000 units, while in the south, starts fell 12.0% to 424,000 units.

Meanwhile, permits fell 11.2% in the south to 453,000, in the northeast permits increased 5.9% to a 107,000 rate, in the Midwest, permits slid 4.6% to 146,000, while permits were down 7.2% in the west to 205,000.

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