The U.S. Commerce Department released the housing market data on Wednesday. Housing starts in the U.S. jumped 5.2% to 1.178 million annualized rate in February from a 1.120 million pace in January, exceeding expectations for an increase to 1.150 million. January's figure was revised up from 1.099 million units.

The increase was mainly driven by rise in starts of single-family homes.

Housing market benefits from the strengthening of the labour market.

Building permits in the U.S. fell 3.1% to 1.1167 million annualized rate in February from a 1.204 million pace in January, missing expectations for a 1,200 million pace. January's figure was revised up from 1.202 million units.

Starts of single-family homes increased 7.2% in February. Building permits for single-family homes were up 0.4%.

Starts of multifamily buildings rose 0.8% in February. Permits for multi-family housing slid 8.4%.