Sales of new U.S. single-family homes surged 20.5% in August to a seasonally adjusted annualized rate of 800,000 units, the Commerce Department’s Census Bureau reported.

The July sales pace was revised upward from 652,000 units to 664,000 units.

Zoom in: Economists had expected new home sales to ease to around 650,000 units for August, making the actual figures a significant beat. • New home sales account for roughly 14% of total U.S. home sales and are measured at the signing of a contract, which can fluctuate monthly and be subject to large revisions. • August sales also rose 15.4% compared to the same month last year, indicating strong year-over-year growth.

Driving the news: The surge coincides with declining mortgage rates after the Federal Reserve cut its benchmark interest ra

See Full Page