June New Home Sales Ahead of Expectations

Washington, DC, July 26, 2010--New home sales in the U.S. rose in June more than forecast, perhaps a signal the worst of the slump triggered by the end of a government tax credit is over.

Purchases increased 24% from May to an annual pace of 330,000, figures from the Commerce Department showed today. The rate was the second-lowest in data going back to 1963 after May’s downwardly revised 267,000 pace.

The lowest mortgage rates on record may help bolster demand, stabilizing the industry that triggered the worst recession since the 1930s.

Economists forecast sales would rise 3.3% to an annual pace of 310,000, according to the median of 73 projections. Estimates ranged from 260,000 to 360,000. The government had initially estimated May sales were 300,000.

The median price decreased 0.6% from June 2009 to $213,400.