Housing starts rise in November, but permits drop | Reuters

"(Reuters) - Housing starts rose slightly more than expected in November, but a surprise drop in permits for future home construction to a 1-1/2 year low indicated continued weakness in the housing market even as the economic recovery gains traction.

The Commerce Department said on Thursday housing starts rose 3.9 percent to a seasonally adjusted annual rate of 555,000 units. October's starts were revised up to a 534,000-unit pace from the previously reported 1-1/2 year low rate of 519,000 units.

Analysts polled by Reuters had expected housing starts to rise to a 550,000-unit rate.

Despite last month's pick-up in residential construction, housing remains weak as a 9.8 percent unemployment rate weighs on demand and homeowners' ability to hang on to their properties, lagging an acceleration in broader economic activity."

Housing starts rise in November, but permits drop | Reuters: