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.
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