Michelle Jamrisko: Sales Of U.S. New Homes Surged In August To Seven-Year High
Purchases of new homes jumped in August to a seven-year high as Americans took advantage of historically low mortgage rates. Sales climbed 5.7 percent to a 552,000 annualized pace, exceeding all forecasts of economists surveyed by Bloomberg and the highest since February 2008, from a 522,000 rate in July that was stronger than initially reported, a Commerce Department report showed Thursday in Washington.
Steady job gains and cheaper borrowing costs are bolstering demand for new homes, particularly as the supply of previously owned properties is still scant. Further healing in residential real estate should help underpin the U.S. economy amid weakness from the stronger dollar and slower overseas growth. “Housing has now finally started to participate more strongly” in the expansion, saidDavid Berson, chief economist at Nationwide Insurance in Columbus, Ohio, who projected sales would rise. “It’s quite likely we’ll continue to see the gains going forward.”
Sales of New Homes in U.S. Increased 5.7% in August bloomberg.com/news/articles/…—
Bloomberg Markets (@markets) September 24, 2015