The Commerce Department reported on Tuesday the housing starts jumped by 22.6 percent m-o-m in July to a seasonally adjusted annual pace of 1.496 million (the highest level since February), while building permits climbed by 18.8 percent m-o-m to an annual rate of 1.495 million (the highest level since January).

Economists had forecast housing starts increasing to a pace of 1.240 million units last month and building permits rising to a pace of 1.320 million units.

Data for June was revised to show homebuilding growing to a pace of 1.220 million units, instead of increasing at a rate of 1.186 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, surged 17.0 percent m-o-m to a rate of 983,000 million units in July, while approvals for the multi-family homes segment jumped 22.5 percent m-o-m to a 512,000 unit-rate.