Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,957,000, 5.0% above the revised April estimate of 1,863,000, but is 3.8% below the May 2005 rate of 2,034,000, reports US Commerce Department. The better-than-expected increase came after declines of 5.5% in April, 7.5% in March and 5.9% in February.

The National Association of Home Builders reported Monday that its builder confidence index fell in June to a reading of 42, the lowest point in 11 years.