U.S. housing starts fall 4.8% as April's pace revised higher; May building permits surge

WASHINGTON (MarketWatch)
Construction on new U.S. homes fell 4.8% in May to an annual rate of 708,000, but permits climbed 7.9% to the highest level in nearly four years, the U.S. Commerce Department reported Tuesday
Economists surveyed by MarketWatch had expected starts to total 720,000 on an annualized basis
Yet housing starts in April were revised up to 744,000 from an original reading of 717,000 - the best spurt of construction since October 2008
And permits for new construction, viewed as a gauge of future demand, jumped to an annual rate of 780,000 from April's upwardly revised level of 723,000 It's the highest rate since September 2008
Permits for single-family homes, which account for three-quarters of the housing market, rose 4% to an annual rate of 494,000 last month
That's the highest level since March 2010
All figures are seasonally adjusted