Reuters) – U.S. housing starts rose less than expected in August as multi-family activity slowed sharply, but a surge in permits to build single-family homes pointed to a sustained strengthening in the housing market recovery.

The Commerce Department said on Wednesday housing starts increased 0.9 percent to a seasonally adjusted annual rate of 891,000 units. July’s starts were revised down to a 883,000-unit pace instead of the previously reported 896,000 units.  Read more