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New Home Sales Surge to 5-Year High

Buyers may be trying to get ahead of rising interest rates


home for saleOn Wednesday, the Commerce Department released data that failed to show any cooling in the U.S. real estate market even in the face of rising mortgage interest rates.

The government said that June sales of single-family homes jumped 8.3%, hitting a seasonally-adjusted annualized pace of 497,000 units. That marked the highest sales rate since May 2008 and topping the 482,000-unit sales pace expected by economists, Reuters noted.

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Options Expiration is Really on Friday Now

One economist said that the increase in mortgage rates has spurred more buyers to enter the market before rates rise even higher.

Home sales between March and May were revised downward by 38,000 units.

The news did little to help homebuyers. Shares of D.R. Horton (DHI) and Ryland Group (RYL) dropped more than 2% in Wednesday afternoon trading, while Toll Brothers (TOL) tumbled more than 4%.

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