New-home sales hit highs in May
Sales increased 2.1 percent last month to an annual rate of 476,000, the U.S. Commerce Department said, providing more evidence of the robust recovery underway in the U.S. housing market.
The number of residential sales in the state hit 1,361, marking an 11 percent increase from last year. It was the 18th consecutive month of year-over-year unit sales increases and the most units sold in May since 2005.
“I continue to believe that it is only responsible to remain guarded in our optimism, but it’s very fair to say that the market is consistently heading in a positive direction,” said NHAR President Bill Weidacher, a broker at Keller Williams Metropolitan Realty in Bedford.
Sales rose in May despite a reversal in mortgage rates that extended into June. The rate on a 30-year mortgage topped 4 percent for the first time in a year, up from 3.5 percent just a few months ago, according to the Mortgage Bankers Association.
Richard Moody, chief economist of Regions Financial Corp., said “higher mortgage interest rates in and of themselves will not derail the housing market recovery.”
Marketwatch contributed to this report.
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