Offering more hope that the housing market is making a recovery, housing starts rose nationally by 1.6 percent a seasonally adjusted annual rate of 626,000 units, their highest level since November 2008 which is a 17-month peak.
The Commerce Department's report has alleviated some of the worries regarding the housing market. Analysts had expected housing starts to rise to 610,000 units.
In recent months the housing market recovery had stalled and sales dropped after strong gains in the second half of 2009.
Analysts are somewhat optimistic about the improving economic conditions with the job growth beginning to grow which will help put the sector back on an upwardly trend. Last months housing starts are seen as a step in that direction.
According to a recent survey released by the National Association of Home Builders home-builder sentiment rose to a seven-month high in April as home buyers raced to take advantage of the extended and expanded home buyers tax credit. Also better economic conditions have also helped greatly.
An indication of future home construction, new building permits jumped last month by 7.5 percent to 685,000-units which are the highest levels since October 2008 as reported by the Commerce Department.