WASHINGTON - U.S. homes under construction increased for the second straight month, rising 0.3% in September to a 610,000 seasonally adjusted annual rate while building permits fell 5.6% to 539,000, their lowest level in 17 months, the Commerce Department reported today.
Economists expected a 580,000 rate each for building permits and housing starts, according to the median estimate from Thomson Reuters.
The housing starts figure edged up from an upwardly revised 608,000 rate in August, originally reported as 569,000 last month. August building permits were revised lower to a 571,000 rate from the 598,000 initially reported.
Still, August housing starts and building permits increased in the same month for the first time since March. The September housing starts figure was the largest monthly total since April. September building permits fell to the lowest level since April 2009.
Single-family building permits increased 0.5% to a seasonally adjusted 405,000 units and single-family homes under construction increased 4.4% to 452,000.
