June 20 (Reuters) – U.S. single-family homebuilding surged in May to its highest in more than a year and permits issued for future construction also climbed, suggesting the housing market may be turning a corner after getting clobbered by Federal Reserve interest rate hikes.

Single-family housing starts, which account for the bulk of homebuilding, rose 21.7% to a seasonally adjusted annual rate of 1.631 million units last month from April’s downwardly revised 1.34 million, the Commerce Department said on Tuesday.

May’s rate was the highest since April 2022, which had been the highest since 2006.

The housing market has taken the biggest hit from the Fed’s fastest monetary policy tightening campaign since the 1980s, but recent data have suggested the worst may have passed.

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