May housing starts dip after hefty April gains; building permits soar

Washington

US HOUSING starts fell in May after a hefty increase the prior month, but a surge in permits for future construction to a near eight-year high pointed to underlying strength in housing.

The steadily firming housing market, marked by rising home prices and sales, is likely to be acknowledged by Federal Reserve officials, who were preparing to gather for a two-day policy meeting on Tuesday.

Policymakers have repeatedly singled out housing as one of the weak spots in the economy. The US central bank is expected to raise in…