Housing starts unexpectedly surge

Initial construction of U.S. homes unexpectedly surged in February, according to a government report released Tuesday.

Housing starts rose to a seasonally adjusted annual rate of 583,000 last month, up 22% from a revised 477,000 in January, according to the Commerce Department.

Economists were expecting housing starts to decline to 450,000, according to consensus estimates compiled by Briefing.com.

Applications for building permits, considered a reliable sign of future construction activity, rose 3% to a seasonally adjusted annual rate of 547,000 last month. Economists were expecting permits to fall to 500,000.