New U.S. home construction roared back to life in November as falling mortgage rates helped to draw consumers back into the housing market.

Housing starts surged 14.8% last month to an annual rate of 1.56 million units, the highest level since May, according to new Commerce Department data released Tuesday. That is well above Refinitiv economists' forecast for a pace of 1.36 million units.

"Investors have clearly rewarded homebuilders as low inventory of existing homes on the market has created an opportunity for new construction," said Jeffrey Roach, chief economist at LPL Financial. "Falling mortgage rates also helped ignite demand. Mortgage rates are the lowest since July."

This is a developing story. Please check for updates.