Housing starts collapsed in February while building permits increased more than expected.
In February, housing starts fell 17% to an annualized pace of 987,000, widely missing expectations.
Building permits increased 3% to a pace of 1.092 million, topping estimates.
Expectations were for housing starts to fall 2.4% from January to an annualized rate of 1.04 million homes.
Building permits, in contrast, were expected to rise 0.5% to an annualized pace of 1.065 million.
January's numbers were revised higher, however, with housing starts rising to a pace of 1.081 million, up from a previously reported pace of 1.065 million and permits were revised up to a pace of 1.06 million from a previously reported 1.053 million.
