WASHINGTON, DC—Housing starts made a nice jump in September, fueled in large part by multifamily activity.

Privately-owned housing starts rose 17.3% in September year over year, to a seasonally adjusted 1,017,000, according to a US Commerce Department report released on Friday. September's starts also represent a 6.3% increase over the revised August estimate of 957,000.

Single-family housing starts in September were at a rate of 646,000; this is 1.1% above the revised August figure of 639,000. Tellingly, the September rate for units in buildings with five units or more was 353,000.

September was the third time this year that nationwide housing starts surpassed the million-mark, the National Association of Homebuilders pointed out. They also ease fears that last's month's dip portended a housing slowdown.

"September's uptick reveals that last month's dip in production was more of an anomaly than a market reversal," said David Crowe, NAHB's chief economist, in a prepared statement. "I expect we will see a continued recovery as job creation grows and consumers gain more confidence in the housing market."

September's numbers might also tweak builder confidence, which fell five basis points after four consecutive monthly gains on the National Association of Home Builders/Wells Fargo Housing Market Index.

Released the day before September's housing starts came out, the index registered 54. In September, the HMI posted a nine-year high. Crowe said the drop was not unusual given the mounting numbers captured in the four previous surveys.

All three HMI components declined in October. The index gauging current sales conditions decreased six points to 57, while the index measuring expectations for future sales slipped three points to 64 and the index gauging traffic of prospective buyers dropped six points to 41.

There is reason for optimism, Crowe said. Crowe. “Historically low mortgage interest rates, steady job gains, and significant pent up demand all point to continued growth of the housing market.”