The pace of housing starts slowed by 6.8% to a 1.215 million seasonally adjusted annual rate in March, below expectations for a decline to a 1.238 million pace, data reported by the Commerce Department Tuesday morning showed.
There were mixed revisions to the pace of starts in the previous two months, with February starts revised up to 1.303 million and January starts revised down to 1.241 million.
The pace of unadjusted starts stands 8.6% above its year ago level, suggesting builders are more confident. However, a decline in the NAHB index released on Monday could rule out a sharp rebound for starts next month.
Building permits rose 3.6% to a 1.260 million rate, a mildly stronger rate than the 1.255 million pace expected.
Home building was stronger in the first quarter, with starts averaging 1.253 million per month compared with a 1.248 million average in the fourth quarter and a 1.145 million average in the third quarter.
Permits averaged 1.256 million at an annual rate in the first quarter, up from 1.233 million in the fourth quarter. Permits averaged 1.174 million in the third quarter.
Housing starts of single-family homes fell 6.2% in March after a 7.6% gain in the previous month. Starts of multi-family homes fell 7.9%, based on an MNI calculation.
Starts were down 16.2% in the Midwest region, down 2.9% in the South and down 16.0% in the West region. These were partially offset by a 12.9% rebound in the Northeast region.
Completions rose 3.2% in March.
Home permitted but not started were up 1.5% in March, suggesting that starts could see an increase in the coming months. Home under construction posted a 0.2% decrease to 1.085 million.
