U.S. sales of previously owned homes in August posted the largest increase in more than a year, as falling interest rates lured buyers into the real estate market, an industry report showed. Sales rose 9.3 percent last month to an annual pace of 5.27 million units after a 9.2 percent plunge in July, the National Association of Realtors said. August's increase was the largest since a 10.9 percent gain in June 1999.
Interest rates are still relatively low, job growth is still strong.
And all that spells very good news for the housing market. Sales of previously owned homes, which account for 85 percent of all houses on the market, are considered one important gauge of consumer demand. Home sales can stimulate spending on goods such as furniture, appliances and decorations. Analysts had expected home resales to rise to 4.95 million units at an annual pace from July's originally reported rate of 4.79 million units, the lowest in five months. Sales rose in all four regions, led by the West.