According to monthly data released on Tuesday by the US Census Bureau and the US Department of Housing and Urban Development, building permits - which imply homes that are authorized by local government, but are yet to be constructed - in May leaped by 4 percent, as against the April figures.

With the building permits rising to a rate of 518,000 in May from 498,000 in April, the builders increased housing units' production - starting new housing units at an annualized rate of 532,000, which happens to be 17.2 percent more than April's revised estimate of 454,000.

Nonetheless, in spite of the notable improvements in the month-on-month figures, especially against the past record lows, despondency is still looming large on the home construction industry. While in May 2008, new home starts indicated an annual rate of 975,000; the year before that had the rate at nearly 1.4 million units.

Talking about the May figures, Joe Robson - Chairman of the National Association of Homebuilders - said: "The outlook for home sales has improved somewhat in recent months, due largely to implementation of the first-time home buyer tax credit and gains in housing affordability. However, looking forward, home builders are facing a few headwinds, including expiration of the tax credit at the end of November; a recent upturn in interest rates; and especially the continuing lack of credit for housing production loans."