Housing starts fell 3.8% to a seasonally adjusted annual rate of 1.1 million, the Commerce Department said Wednesday.
MarketWatch-surveyed economists had forecast an annual rate of 1.17 million. December figures were revised down to 1.14 million from 1.15 million.
Permits, which foreshadow future starts, eased 0.2% to an annual rate of 1.2 million. That was 13.5% higher than the same period a year ago. The total tally of housing units under construction, 978,000, rose to the highest since May 2008 in January.
Starts touched a near-eight-year high in June but have eased back since then. Builder sentiment has wobbled in line with consumer confidence in recent months.
Single-family starts slipped 3.9% to a 731,000 annual pace, while single-family permits were down 1.6% to a pace of 720,000. While multi-family dwellings like apartment buildings have comprised the bulk of housing construction since the recession, the pace of single-family homebuilding picked up steadily throughout 2015, a promising sign of stronger economic activity.
