US new build in bounce-back

The United States has seen an increase in the number of new build homes being sold, official figures have revealed.

Seasonally-adjusted statistics from the US department of housing and urban development for September showed a total of 464,000 new homes being bought in the month, up 2.7 per cent on the August total of 452,000.

Although this total is a third less than the September 2007 figure, it may be the first sign of a recovery in the market.

The figures apply to the month before widespread action was taken by politicians and the Federal Reserve to bolster the banking system.

During this month Congress has voted through a USD700 billion (GBP446 billion) banking bailout package, while the Federal Reserve trimmed the federal funds rate by 0.5 per cent, a cut carried out in concert with other central banks around the globe.