US new home sales jump to 13-month highs

US new home sales jumped to a 13-month high in April, boosted by a persistent shortage of previously owned houses on the market and a sharp decline in prices from last year’s lofty levels.

The Commerce Department report followed on the heels of data showing a surge in permits for future single-family housing construction.

Confidence among homebuilders rose to a 10-month high in May, but there are no signs yet that a recent tightening in credit conditions are weighing on the housing market.

New home sales increased 4.1% to a seasonally adjusted annual rate of 683,000 units last month, the highest level since March 2022. March’s sales pace was revised lower to 656,000 units from the previously reported 683,000.