Washington, September 27--Sales of new single family homes in August rose a surprising 9.4 percent to a seasonally adjusted annual rate of 1.184 million units from a downwardly revised 1.082 million units the month before, according to the Commerce Department.
It was the sharpest climb since December 2000.
Economists were expecting an increase to a pace of 1.165 million.
Inventories rose to 404,000 homes available sale, the largest amount since October 1979, but the supply of homes available at the current sales pace dipped to 4.2 months.
Mortgage rates crept higher in early summer on expectations of a strengthening U.S. economy, but have slid since then.
New home sales had declined in both July and June.
New home sales surged 12.6 percent in the South, the region with the biggest volume. Sales rose 19.5 percent in the West and 6.1 percent in the Northeast, but slid 8.3 percent in the Midwest.
