Housing starts rose 5-percent, coming in at an annual rate of 1.350 million in May. That topped the estimate for 1.310 million.
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Building permits, which are a sign of future activity, fell 4.6 –percent, coming in at 1.301 million.
That was short of the estimate for 1.350 million.
It was the second straight monthly drop for permits.
Single-family home construction rose in the Northeast and Midwest, but fell in the South and West.
On Monday , the National Association of Homebuilder’s housing market index for June, fell by 2 points to 68. The gauge of future sales conditions fell to a seven-month low of 76 as builders are starting to fret about input costs.
On Wednesday, traders will get another housing-related report in the form of existing home sales.