The nascent recovery in the U.S. housing market took a breather in March, with both permits and housing starts declining for the month.
Housing starts, which are measured when builders break ground on a new home, fell 0.8 percent in March to an annualized rate of 1.420 million, according to government data released on Tuesday. The previous month was revised down from 1.450 million to 1.432 million.
Economists had actually projected a bigger decline, to 1.40 million, according to Econoday.
Permits, which are an indicator of future plans to build, fell more steeply. These declined 8.8 percent to an annual pace of 1.413 million from February’s 1.550 million, revised up from the initial estimate of 1.524 million. Economists had forecast 1.441 million.
On Monday, the National Association of Home Builders said that builder confidence rose again in April, the fourth consecutive month of improving confidence for builders.