New home sales in the US hit fast pace

  • The sale of new homes in the US hit the fastest pace last month in over five years. This could mean that housing is gaining momentum after last year's slowdown, causing rising interest rates. 

    According to the Commerce Department, sales of new homes went up to 9.6 percent in January, which is the fastest it has been since July 2008. 

    The increase came as a surprise considering that economists had been expecting a sales drop because of the winter storms in several parts of the country. 

    Sales had dropped in November and December and there were worries about the housing recovery. 

    Tagged as: housing recovery us, us home sales drop, us homes, money news, business news