U.S. housing starts rise 2.3% in August to 750,000 (by Jeffry Bartash)

WASHINGTON (MarketWatch) - Construction on new U.S. homes rose 2.3% in August to an annual rate of 750,000, while permits fell slightly from a multi-year high. Economists surveyed by MarketWatch had expected starts to climb last month to an annual rate of 775,000 on a seasonally adjusted basis. Housing starts in July were revised down to 733,000 from an original reading of 746,000, according to Commerce Department data. Permits for new construction, viewed as a gauge of future demand, fell to an annual rate of 803,000 from July's slightly revised level of 811,000. Permits for single-family homes, which usually account for three-quarters of the housing market, edged up to an annual pace of 512,000 last month, the highest rate since March 2010. Housing starts are 29% higher compared to one year ago.