The Commerce Department reported on Tuesday the building permits issued for privately owned housing units rose by 0.3 percent m-o-m in May to a seasonally adjusted annual pace of 1.294 million, while housing starts fell by 0.9 percent m-o-m to an annual rate 1.269 million.

Economists had forecast housing starts dropping by 0.4 percent m-o-m last month and building permits being flat m-o-m.

Data for April were revised up to show homebuilding increasing to a pace of 1.281 million units, instead of gaining to a rate of 1.235 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, surged 3.7 percent m-o-m at 815,000 in May, while approvals for the multi-family homes segment declined 5.0 percent m-o-m to a 479,000 unit-rate.