New home sales spike in April
Data from the Census Bureau showed that new home sales rebounded and rose 6.8% to an annual rate of 517,000.
Economists had expected that new home sales rose 5.0% to an annual rate of 505,000.
In March, home sales plunged 11.4% to an annual rate of 481,000, far below expectations.
In a preview, UBS economists wrote:
"New home sales are a notoriously volatile series on a month-to-month basis. The trend is likely upward, however, judging by most other housing-related indicators. We forecast a decent rise in the upcoming April report, consistent with the rising confidence about sales that homeowners have reported and the rise in the mortgage purchase applications index in April."
Earlier, the latest S&P/Case-Shiller home price index showed that home prices rose more than expected in March.