U.S. Housing Starts Top Forecasts, Permits Rise to Seven-Month High

U.S. new-home construction rebounded last month to the best pace since August while permits rose to a seven-month high, a sign homebuilding is potentially stabilizing even as higher prices and borrowing costs pose headwinds.

Residential starts rose 3.2 percent to a 1.26 million annualized rate, exceeding forecasts, after a 1.22 million pace in the prior month that was revised down slightly, government figures showed Tuesday. Single-family starts, a key segment, fell to the lowest since May 2017 and dropped for a third straight month. Permits, a proxy for future construction, rose.