Housing starts in January were at a seasonally adjusted annual rate of 1,230,000, 18.6% above the revised December estimate of 1,037,000 but 7.8% below the January 2018 rate of 1,334,000, the Census Bureau and Department of Housing and Urban Development reported Friday.

Single‐family housing starts in January were at a rate of 926,000, 25.1% above the revised December figure of 740,000. The January rate for units in buildings with five units or more was 289,000.

Building permits in January were at a seasonally adjusted annual rate of 1,345,000, 1.4% above the revised December rate of 1,326,000 but 1.5% below the January 2018 rate of 1,366,000. Single‐family authorizations in January were at a rate of 812,000 2.1% below the revised December figure of 829,000. Authorizations of units in buildings with five units or more were at a rate of 482,000 in January.

Housing completions in January were at a seasonally adjusted annual rate of 1,244,000, 27.6% above the revised December estimate of 975,000 and 2.1% above the January 2018 rate of 1,218,000. Single‐family housing completions in January were at a rate of 914,000, 30.2% above the revised December rate of 702,000. The January rate for units in buildings with five units or more was 327,000.

Mike Fratantoni, senior vp/chief economist for the Mortgage Bankers Association, said, ": The data on new housing starts has been particularly volatile over the past few months, driven by large swings in multifamily starts. Focusing on the single-family data, the 4.5% year-over-year gain is a promising sign for the housing market. Given the underlying strength in overall housing demand, slow and steady growth in new supply will support a modest increase in sales.”

Regarding the Labor Department's February jobs report that showed a major slowdown in hiring, he said, “Job growth unexpectedly dropped in February, including a decline in construction jobs. However, some of this decrease may be a result of the bad weather in February. The decline in the unemployment rate and the further increase in wage growth shows a job market that is still quite strong, even if we may be near the top of the current economic cycle.”