Singlefamily housing starts increase 2.7 in March
Singlefamily building permits jump 4.1
Overall housing starts fall 0.8; permits drop 8.8

WASHINGTON, April 18 Reuters U.S. singlefamily homebuilding increased for a second straight month in March, while permits for future construction surged, offering some glimmers of hope for the depressed housing market ahead of the busy spring selling season.

The improvement in the singlefamily housing market segment, which was reported by the Commerce Department on Tuesday, likely reflected buyers taking advantage of a retreat in mortgage rates. A survey on Monday showed falling mortgage rates and tight supply of previously owned houses were supporting the new home market.

Mortgage rates have pulled back from the peaks in OctoberNovember, helping to provide a jolt to demand and sales activity, said Ben Ayers, a senior economist at Nationwide in Columbus, Ohio. But the environment remains challenging with high input and labor costs for builders and expensive financing options for buyers.

Singlefamily housing starts, which account for the bulk of homebuilding, rose 2.7 to a seasonally adjusted annual rate of 861,000 units last month. Data for February was revised higher to show singlefamily homebuilding rising to a rate of 838,000 units instead of the previously reported pace of 830,000 units.

Singlefamily homebuilding increased 4.4 in the Northeast and soared 23.6 in the Midwest. It advanced 4.8 in the densely populated South,…