The Commerce Department reported an unexpected jump in the rate of new home construction this morning. According to the latest government figures, the rate at which builders broke ground on new homes jumped 3.4 percent during September, to an annual rate of 2.108 million. The government also revised its August figure higher to 2.038 million.

Most economists had expected a slight drop-off in housing starts; the consensus estimate put the rate at 1.950 million.

Also in today's report, an encouraging sign for future housing starts: Building permits, generally considered the best indication of future home building activities, jumped to their highest level in 32 years. In September municipalities issued permits at an annual rate of 2.189 million.

What does that mean? Could it be that the rumors of a housing market collapse were a bit early? Maybe; several signs are pointing that way.

Mortgage applications actually went up 6.4 percent last week according to the Mortgage Bankers Association. This comes at a time when the average 30-year fixed-rate mortgage is above 6 percent, which most economists expected would drive applications down.

The Home Builders Association says its "builders confidence" measure has ticked up. "This is a reassuring sign that builder attitudes are bouncing back from the initial shock of the hurricanes' devastation and the economic uncertainties immediately following those storms, even in the midst of higher mortgage interest rates," said NAHB President Dave Wilson in a statement.

How much does this matter? This is important. Most of our country's wealth is tied up in homes.

Definition: Housing starts measures the number of new homes where construction is actually started. Think of this survey as a measure of groundbreakings. The number is presented as a seasonally-adjusted annual rate so you can compare one month to another.

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