US new homes sales rise

Sales figures for new-build homes in the US rose above expectations in June, new data has revealed.

Figures from the US Bureau of the Census showed that last month saw an 11 per cent jump in such sales, compared with the anticipated 2.3 per cent.

Announcing the news, under secretary for economic affairs Rebecca Blank claimed it was an early sign of the positive effects of stimulus package money aimed at improving the market.

She remarked: "The evidence is clear that home buyers are taking advantage of Recovery Act tax incentives, declines in home prices and relatively low mortgage rates. Both new and existing homes have become more affordable."

Commenting to Reuters, managing director at Zephyr Management in New York Jim Awad suggested it was a sign that the market has bottomed out in the country, as well as another indicator that the third quarter of this year will reveal that the economy is growing again.

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