U.S. new home sales rise surprisingly strong 16.6% in May

Associated Press Jun 23, 2020
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A for-sale sign on a house in Washington. Eric Baradat/AFP via Getty Images

U.S. new home sales rise surprisingly strong 16.6% in May

Associated Press Jun 23, 2020
A for-sale sign on a house in Washington. Eric Baradat/AFP via Getty Images

Sales of new homes rose a surprisingly strong 16.6% in May suggesting that the reopening of major parts of the country were giving a boost to the housing market. The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 676,000 last month. That was a much better performance than expected. Many economists had forecast that sales would fall in May.

The report on new home sales followed a report Monday that sales of existing homes plunged 9.7% in May to an annual rate of 3.91 million, the slowest pace in nearly a decade.

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