Washington, DC, August 24--New home sales rose 6.5 percent to a 1.41 million annual rate last month from 1.324 million in June, the Commerce Department said today in Washington.
Economists had expected sales to fall to 1.328 million, the median of 52 forecasts, from the previously reported 1.374 million.
Mortgage rates within half a percentage point of a 40-year low and 26 straight months of job growth spurred home sales in July, boosting demand for builders, real estate agents and lenders.
The median price of new homes fell to $203,800, the lowest since December 2003, from $219,500. Today's report puts new home sales in the first seven months of this year on a record pace of 1.304 million. Sales were 1.203 million last year.
The average 30-year mortgage rate was 5.70% in July, up from 5.58% in June but lower than July 2004's 6.06%, according to Freddie Mac.
Commerce's report Wednesday showed new-home sales rose 10.1% in the Northeast and 36.0% in the West. Sales fell 13.5% in the Midwest and 3.5% in the South.
