US home resales hit an eight month highTuesday 22 July 2014 18.16
US home resales hit an eight month-high in June, suggesting the housing market was gradually regaining momentum and would help the economy to stay on a higher growth path this year.
The third straight month of home sales gains, reported by the National Association of Realtors, added to employment and retail sales data that have indicated economic growth ended the second quarter on a firmer note.
A separate report showed inflation moving slightly higher.
"The economy is normalizing from whatever went wrong in the first quarter. Growth is up and running," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.
Existing home sales rose 2.6% to an annual rate of 5.04 million units last month, with the median house price hitting its highest level since 2007.
The housing market stumbled in the second half of last year, raising concerns it could undermine the economy's recovery. Now, its rebound is bolstering forecasts for stronger growth.
Growth is expected to have accelerated to above a 3% annual rate in the second quarter and is forecast maintaining an even stronger pace for the rest of the year.
US home builder stocks rose on the data, with the Dow Jones index for home construction up about 1.5%.