Housing Starts Jump 5% in May

Construction of new homes and apartments, after three months of declines, increased in May, helped by dry weather.

The Commerce Department said builders started construction at a seasonally adjusted annual rate of 1.957 million units last month, up 5% from April's pace. The better-than-expected increase came after declines of 5.5% in April, 7.5% in March and 5.9% in February.

Analysts attributed the rise to an unusually dry spring in many parts of the country, which allowed builders to start work on more homes. But they cautioned that construction activity is likely to slide in coming months as the housing industry slows under the impact of rising mortgage rates.

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