US new home sales rise more quickly than expected in May

Sales of newly built homes in the US increased by more than expected last month, even if from a lower than anticipated base.

According to the Department of Commerce, in seasonally adjusted terms, new home sales grew by 4.1% month-on-month to reach an annual rate of 683,000.

Economists had forecast a reading of 660,000.

However, the prior month's pace was revised own from 680,000 to 656,000.

In comparison to one year before, new home sales were running ahead by 11.8%.

The median sales price declined, from $455,800 for March to $420,800 in April, while in average terms they fell from $559,200 to $501,000.

The supply of new homes available for sale meanwhile edged up from 6.7 months' worth of sales to 6.8 months.

-- More to follow --