WASHINGTON, July 24 (Reuters) - Sales of new U.S. single-family homes increased more than expected in June as the housing market outperforms the broader economy amid record low interest rates and migration from urban centers to lower-density areas because of the COVID-19 pandemic.
The Commerce Department said on Friday new home sales rose 13.8% to a seasonally adjusted annual rate of 776,000 units last month. New home sales are counted at the signing of a contract, making them a leading housing market indicator.
May’s sales pace was revised upward to 682,000 units from the previously reported 676,000 units. Economists polled by Reuters had forecast new home sales, which account for more than 10% of housing market sales, rising 4% to a 700,000-unit pace in June. (Reporting by Lucia Mutikani; editing by Jonathan Oatis)