US home construction fell for a third month in February, but in a hopeful sign, applications for building permits rose to their highest level in four months.
The Commerce Department says builders started work on 907,000 homes at a seasonally adjusted annual rate in February.
That was down a slight 0.2 per cent from January, when construction had fallen 11.2 per cent.
The declines have been blamed in large part on severe winter weather in much of the country.
Applications for permits to build new homes, considered a gauge of future activity, rose a solid 7.7 per cent in February to 1.02 million units.
The expectation is that housing sales and construction will show further gains this year, helped by a stronger economy.
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