The construction of U.S. single-family housing surged in September, though a drop in apartment building pushed overall home building activity to an 18 month low.
But Wednesday's report from the U.S. Commerce Department also showed building permits jumping last month, suggesting overall residential construction may rise again in the fourth quarter.
In its Beige Book report also published on Wednesday, the Federal Reserve struck an upbeat note on the housing market, saying residential real estate activity expanded in most districts in recent weeks.
