Americans are buying new homes at the highest rate in eight-and-a-half years. And sales of existing homes reached the highest monthly level since 2007. Bobbi Rebell reports.
Americans are buying new homes at the highest rate in eight-and-a-half years, an increase of 3.5 percent. The data, from The U.S. Commerce Department was better-than-expected. A separate report from S&P CoreLogic Case-Shiller showed sales of existing homes reached the highest monthly level since 2007. But prices remain under control. That same release showed U.S. single-family home prices rose less than expected in May on a year-over-year basis, and were down from April. The key support - a tightening labor market and mortgage rates near record lows. Steve Blitz, chief economist at M Science. (SOUNDBITE) STEVE BLITZ, CHIEF ECONOMIST, M SCIENCE (ENGLISH) SAYING: "We're trending at around, little under 600,000 new homes on a seasonally adjusted annual rate. And, I think, before the cycle is over, the potential to get to 750,000 - 800,000 is certainly possible. And probably likely as long as the economy continues to expand." Other data out Tuesday showed consumer confidence held steady in July in part thanks to the recent rally on Wall street and the stronger jobs market.