WASHINGTON – U.S. homebuilders began work at a slower pace in January than in December, though activity was the third-highest since 2008. The steady pace of construction is a sign of continued strengthening in residential real estate.

The Commerce Department said Wednesday that builders started work at a seasonally adjusted annual rate of 890,000 homes last month. That was down 8.5 percent from December, when housing starts had hit an annual rate of 973,000, the most since June 2008.

And in an encouraging sign for the rest of the year, applications for building permits, a sign of future construction, rose to an annual rate of 925,000 in January. That was 1.8 percent more than in December, which had been the high point since mid-2008.