U.S. New Home Sales Rose 6.7% in May

Sales rise despite higher prices and low inventory

WASHINGTON—Sales of new homes in the U.S. rose heading into the summer months, despite high selling prices and low home inventory.

Purchases of newly-built single-family homes—a relatively narrow slice of all U.S. home sales—grew 6.7% to a seasonally adjusted annual rate of 689,000 in May, the Commerce Department said Monday. Economists surveyed by The Wall Street Journal had expected a smaller 0.9% increase.

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