Housing starts rebounded unexpectedly strongly in March from a big drop in February according to the Commerce Department.

Housing starts rebounded unexpectedly strongly in March from a big drop in February, according to Commerce Department reports.

The reports shows that groundbreaking for new homes climbed 8.3 percent -- the largest rise since September -- to a seasonally adjusted 1.780 million unit annual rate from an upwardly revised 1.644 million clip in February. Permits dipped to a seasonally adjusted annual 1.685 million pace from an upwardly revised 1.811 million rate the month before.

The starts beat the expectations of analysts, who had forecast a 1.694 million pace. Permits fell short of expectations of a 1.741 million pace.