New home construction unexpectedly surged in April to its best level in more than seven years as the housing market rebounded strongly from two weak months largely caused by bad weather.
Privately owned housing starts increased 20.2% from March to an annualized level of more than 1.1 million, the Commerce Department said Tuesday.
The level was the highest since November 2007.
Building permits, an indicator of future construction, also jumped in April in another positive sign for economic growth in the second quarter of the year.
Permits increased 10.1% from March to a seasonally adjusted annualized level of more than 1.1 million as well. That level was the best...