NEW YORK (CNN/Money) - Construction spending in the United States rose to a record level in May, the government reported Thursday, but less than economists' had expected as rising mortgage rates kept building in check.

Construction spending rose 0.3 percent after a downwardly revised 1.2 percent gain in April. Wall Street had expected a 0.7 percent gain, according to a consensus of economists surveyed by Briefing.com.

Total construction spending hit a seasonally adjusted record of $988.53 billion on an annual rate.

Private construction rose 0.4 percent to $751.2 billion, while public construction dipped 0.2 percent to $237.4 billion.

With mortgage rates rising before the Federal Reserve hiked interest rates by 25 basis points Wednesday, there had been concern that the housing market, which remained strong through the recession, would suffer.

However, residential spending climbed 0.8 percent in May to a seasonally adjusted rate of $532.3 billion.