Please use symbol entry at top right of page to search

U.S. new home sales unexpectedly rise in May

WASHINGTON, June 24 (Reuters) - Sales of new U.S. single-family homes unexpectedly rose in May, but the rebound is likely temporary as home prices remain elevated and mortgage rates approach 6%, reducing affordability.

New home sales jumped 10.7% to a seasonally adjusted annual rate of 696,000 units last month, the Commerce Department said on Friday. May's sales pace was revised higher to 629,000 units from the previously reported 591,000 units.

Economists polled by Reuters had forecast that new home sales, which account for a small share of U.S. home sales, would fall to a rate of 588,000 units. (Reporting by Lucia Mutikani; Editing by Mark Porter)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.