By Jonathan House and Tess Stynes | The Wall Street Journal
Sales of new homes rose to the highest level in nearly five years in May and a key gauge of existing-home prices surged, indicating substantial strength in the housing sector ahead of recent worries about rising mortgage rates.
Sales of new homes rose to the highest level in nearly five years in May, suggesting the housing industry will continue to power the U.S. recovery. Dr. Robert J. Shiller, Yale University professor and Case-Shiller co-founder, joins MoneyBeat.New-home sales rose 2.1% in May to a seasonally adjusted annual rate of 476,000 new homes, the Commerce Department said Tuesday. That was the highest level since July 2008.
Separately, the Standard & Poor’s Case-Shiller index showed that existig-home prices in 20 U.S. metropolitan areas were 12.1% higher in April than a year earlier. Home prices posted their largest monthly gain since the Case-Shiller data began, rising 2.5% in April from March in the 20-city index. On a seasonally adjusted-basis, the 20-city index rose at a 1.7% monthly rate.
Related: High stakes real estate in Sin City
