The Commerce Department reported on Tuesday the building permits issued for privately owned housing units surged by 5.0 percent m-o-m in October to a seasonally adjusted annual pace of 1.461 million (the highest level since May 2007), while housing starts rose by 3.8 percent m-o-m to an annual rate of 1.314 million.

Economists had forecast housing starts increasing to a pace of 1.320 million units last month and building permits falling to a pace of 1.383 million units.

Data for September was revised to show homebuilding growing to a pace of 1.266 million units, instead of decreasing at a rate of 1.256 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, increased 3.2 percent m-o-m at 909,000 in October (the highest level since August 2007), while approvals for the multi-family homes segment jumped 8.2 percent m-o-m to a 552,000 unit-rate.

In the meantime, groundbreaking on single-family homes rose 2.0 percent m-o-m to a rate of 936,000 units in October (the highest in 9 months), while housing starts for the multi-family climbed 8.6 percent m-o-m to a 378,000 -unit pace.