U.S. new home sales surge in August

WASHINGTON —Sales of new U.S. single-family homes got a bigger than expected boost in August, as lower mortgage rates continue to make their effect felt. The U.S. Commerce Department said new home sales were up 7.1% to a seasonally adjusted annual rate of 713,000 units, with activity strongest in the southern and western states. In a Reuters poll, economists forecast just a 3.5% increase, to a rate of 660,000 units—which was also the revised figure for July’s sales, initially reported as 635,000 units. Compared to August 2018, sales soared by 18%.