WASHINGTON: Sales of new U.S. single-family homes rose to a near 13-year high 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.
Economists polled by Reuters had forecast new home sales, which account for about 14per cent of housing market sales, rising 4per cent to a 700,000-unit pace in June. New home sales accelerated 6.9per cent from a year ago in June. Job losses have disproportionately affected low-wage workers, which could explain why the housing market is doing much better than other sectors of the economy, which slipped into recession in February. The 30-year fixed mortgage rate is at an average of 3.01per cent, close to a 49-year low of 2.98per cent touched last week, according to data from mortgage finance agency Freddie Mac.