Construction of new homes increased to an annual rate of 574,000 in November, 8.9 percent above the revised October rate of 527,000 according to a Commerce Department report released Wednesday. Home building rebounded from a six-month low during the said month. This was still 12.4 percent the November 2008 rate of 655,000.

New construction increased the most in the Northeast, with a 16.4 percent increase from the previous month. Housing starts climbed 12.3 percent in the South, in the Midwest by 3 percent and by 1.9 percent in the West.

Building permits issued in November climbed to a seasonally adjusted annual rate of 584,000. That was 6 percent above the revised October rate of 551,000, and 7.3 percent below the November 2008 estimate of 630,000.