22% Jump in Housing Starts

February U.S. housing starts jumped 22% to a seasonally adjusted annual rate of 583,000, according to the Commerce Department announced today. The increase breaks a 7 month decline and provides the first early signs of a rebound in the beleagured sector.

Todays jump was unexpected as economists had anticipated the decline to continue with an estimated drop to 456,000 units. Building permits increased 3% in February to a 547,000 annual rate with Single-family permits rising 11%, the biggest percentage gain in 18 years to an annual rate of 373,000 units.