Sales of new U.S. homes rose in June to the highest level in five years, pointing to gains in residential construction that will support the economic expansion in the second half of the year.
Purchases climbed 8.3 percent to an annualized pace of 497,000 homes, the highest level since May 2008, the Commerce Department said today in Washington. The median estimate of 77 economists surveyed by Bloomberg called for a gain to 484,000.
Growing employment and the desire to take advantage of historically low borrowing costs before they rise further will probably keep releasing pent-up demand, driving builder confidence and sustaining increases in home construction. Federal Reserve Chairman Ben S. Bernanke last week said policy makers are prepared to act if the recent jump in borrowing costs shows signs of hurting demand.
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