Housing starts hold steady

Gain of 0.2% below forecasts in May as permits decline.
June 16, 2005: 8:34 AM EDT

NEW YORK (CNN/Money) - The pace of housing starts held steady in May, the government reported Thursday, as the reading on the strength of the real estate market came in below Wall Street expectations.

The Census Bureau reported that housing starts came in at an annual pace of 2.01 million new homes in May, up 0.2 percent from the rate in April. Economists surveyed by Briefing.com had forecast starts would come in at a 2.05 million pace in May.

The number of building permits, a sign of builder's confidence in the housing market, slowed in May. The government report showed an annual pace of 2.05 million permits in the period, compared with a revised 2.15 million rate in April. Economists had forecast a decline in the rate to 2.11 million in May.