The Commerce Department said that building permits issued jumped 7.5 percent to a seasonally adjusted annual rate of 685,000 in March reaching its 17-month high.

Housing starts climbed 1.6 percent to a seasonally adjusted annual rate of 626,000 units. The report showed the majority of permits issued in March were for single-family homes at , 543,000.

The South had the biggest number of permits issued, at 360,000, while the Northeast, at 66,000, had the fewest.

In addition, the report showed that new home construction rebounded in March after severe snow storms hampered activity in February.

Housing starts increased to an annual rate of 626,000 during the month, up 1.6% from February's revised rate of 616,000. Housing starts were up 20.2% from the 521,000 rate in March 2009. March housing starts were the highest since November 2008 and were better than forecast.