Commerce Department estimates for home construction permits showed a 13.9% jump in Oct 2013 as compared to the same period last year. The numbers released this week showed privately-owned housing units authorized by building permits in October were at an adjusted annual rate of 1,034,000—6.2% above the Sept rate of 974,000.

An analysis by CNBC concluded that permits for future U.S. home construction rose to their highest level in nearly 5 1/2 years in October, suggesting the housing market recovery remained intact despite recent signs of slowing down. CNBC’s Steve Liesman says the report is mostly driven by multi-family construction.

Economists polled by Reuters for the CNBC report had expected building permits at a 930,000-unit rate in October. According to Reuters, while permits are not counted in gross domestic product (GDP), they are a key indicator of economic activity and the sturdy gains in both September and October should ease concerns the housing market recovery was stalling.

“Higher mortgage rates have slowed the pace of home sales, but demand for accommodation as household formation continues to recover from multi-decade lows is expected to keep residential construction supported,” writes Reuters. “Home resales fell in October for a second straight month and confidence among single-family home builders has ebbed somewhat since nearing an eight-year high in August.”

Also from Reuters:
• Permits for the multifamily home sector surged 15.3% in October after increasing 20.1% in September.
• Permits for buildings with five units or more reached their highest level since June 2008.
• Single-family home permits, the largest segment of the market, increased 0.8% after falling 1.9% in September.

New residential construction data for Nov 2013 will be released on Wednesday, Dec 18, 2013.