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.
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