Housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units last month, with single-family construction rising for a fifth straight month and activity in the volatile multi-family sector rebounding solidly, the Commerce Department said on Tuesday.

Data for September was revised to show homebuilding declining to a pace of 1.266 million units, instead of decreasing to a rate of 1.256 million units as previously reported.

Economists polled by Reuters had forecast housing starts increasing to a pace of 1.320 million units in October.

Housing starts advanced 8.5% on a year-on-year basis in October. Building permits surged 5.0% to a rate of 1.461 million units in October, the highest level since May 2007. Permits were driven by the single-family housing segment, which increased 3.2% to the highest level since August 2007.

The housing market, the most sensitive sector to interest rates, has perked up in recent months, catching up to the Federal Reserve’s monetary policy easing, which has pushed down mortgage rates from last year’s multi-year highs.

Read more here:  https://www.reuters.com/article/us-usa-economy/u-s-housing-starts-rebound-permits-highest-in-over-12-years-idUSKBN1XT1S1?feedType=RSS&feedName=newsOne