New home sales highest since 2007

Americans stepped up their purchases of new homes in July to the fastest pace in nearly nine years, the latest sign that low mortgage rates and a solid job market are helping support the residential real estate market.

New-home sales jumped 12.4% last month to a seasonally adjusted rate of 654,000 annual units, the strongest level since October 2007, the Commerce Department said. The demand has eclipsed the pace of construction. Just 4.3 months’ supply of new homes is available, down from 5.2 months a year ago.