New Home Sales Spike 14% In September

In September, new home sales in the U.S. saw the highest increase since March of this year.

Sales of new homes jumped 14% in September to the fastest pace in six months as strong demand helped offset rising prices.

The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 800,000 units last month, which was well above what economists had been expecting.

However, the government revised lower its estimates for sales in the previous two months with August now showing a 1.4% decline to a rate of 702,000 units.