The U.S. Commerce Department released the housing market data on Wednesday. Housing starts in the U.S. declined 3.8% to 1.099 million annualized rate in January from a 1.143 million pace in December, missing expectations for an increase to 1.170 million. December's figure was revised down from 1.149 million units.

The fall was driven by declines in starts of single-family and multifamily homes.

Housing market benefits from the strengthening of the labour market.

Building permits in the U.S. fell 0.2% to 1.202 million annualized rate in January from a 1.204 million pace in November, beating expectations for a 1,200 pace.

Starts of single-family homes decreased 3.9% in January. Building permits for single-family homes were down 1.6%.

Starts of multifamily buildings fell 3.7% in January. Permits for multi-family housing rose 2.1%.