Housing starts unexpectedly increase in April after falling in March

New U.S. home construction rebounded in April as limited inventory helped to jolt homebuyer demand, but the housing market remains in a slump.

Housing starts climbed 2.2% last month to an annual rate of 1.40 million units, according to new Commerce Department data released on Tuesday. That is above Refinitiv economists' forecast for a decline.

In a sign the deep freeze that has paralyzed the housing market for months is not over yet, housing starts remain down 22.3% compared with the same period one year ago.

Applications to build – which measures future construction – also tumbled 1.5% to an annualized rate of 1.42 million units.

The data comes one day after the National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose five points to 50, the highest reading since July.

It marked the first time in nearly a year that the index pulled out of negative territory.

https://www.foxbusiness.com/economy/housing-starts-unexpectedly-increase-april-falling-march