New U.S. single-family home sales rose more than expected in June, reaching their highest level in nearly eight-and-a-half years, the latest sign that the housing market stateside was gathering momentum.
The U.S. Commerce Department said on Tuesday new home sales increased 3.5% to a seasonally-adjusted annual rate of 592,000 units last month, the highest level since February 2008.
May's sales pace was revised up to 572,000 units from the previously reported 551,000 units. Economists had forecast new home sales, which account for about 9.6% of the American housing market, rising to a rate of 560,000 units last month.
Sales were up 25.4% from a year ago. Last month's increase left new home sales in the second quarter well above their average for the first three months of the year.
