July New Home Sales Rise 6.5% to Record Rate

August 24, 2005 6:00 PM, EDT

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.S. new home sales rose 6.5% to a record rate in July, the Commerce Department reported Wednesday.

The gain, to an annual rate of 1.41 million homes, followed a 1.324 million rate in June that was less than an originally reported 1.374 million rate.

Rising home sales can mean more business for flatbed trucking companies that haul building materials and dry van freight that haul household appliances and furniture.

The July rate exceeded forecasts of economists, who had predicted new home sales to fall to a 1.328 million rate, Bloomberg reported.

Bloomberg cited continued low mortgage rates as a big factor driving the sales.

New home sales rose in two of four U.S. geographic regions, climbing 36% to a record in the West and 10.1% in the Northeast. They fell 13.5% in the Midwest and 3.5% in the South.

ew home sales account for about 15% of U.S. residential real estate sales.