Production of new single-family homes and apartments rose 9.3 percent in November, according to the U.S. Commerce Dept., marking the fastest pace of housing starts since October '08.

Builder confidence improves for three consecutive months for the first time since mid-2009, signifying a slowly emerging upward trend, said NAHB Chief Economist David Crowe. Large inventories of foreclosed properties continue to be a problem but builders report more inquiries and interest among potential buyers.