Reuters
Sales of new homes in the United States vaulted to a five-year high in June, while other data on Wednesday showed an acceleration in factory activity in July, bolstering hopes of a third-quarter pickup in economic growth.
Showing no signs of slowing in the face of higher mortgage rates, sales of single-family homes increased 8.3 percent to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008, the Commerce Department said.
Economists, who had expected sales to advance only to a 482,000-unit rate, said buyers sitting on the fence had probably rushed into the market to lock in mortgage rates in anticipation of even higher rates.
“The recent increase in mortgage rates hasn’t slowed demand as long as home affordability remains high,” said Bob Walters, chief economist at Quicken Loans in Detroit. “We are, however, seeing an increased urgency from potential new home buyers as they move to secure today’s historically low rates.”
