Economics

U.S. New-Home Sales Surge With Buyers Returning to Market

Purchases jumped in May after freezing up during the shutdown
Record-low interest rates are making homes more affordable

Construction workers install frames for windows and doors in a home being built in Michigan.Photographer: Emily Elconin/Bloomberg

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By Prashant Gopal

June 23, 2020 at 2:12 PM UTC

Updated on

June 23, 2020 at 3:44 PM UTC

This article is for subscribers only.

New-home sales in the U.S. rose more than expected in May, with record-low mortgage rates pulling buyers back into a housing market that froze up during the pandemic.

Purchases of single-family houses climbed 16.6%, the second-largest monthly advance since 1992, to a 676,000 annualized pace, government data showed Tuesday. The median forecast in a Bloomberg survey of economists was 640,000.