December home sales surge to a 10-month high

Washington

PURCHASES of new homes in the US surged in December to the highest level in 10 months, closing out the best year for housing since 2007.

Sales jumped 10.8 per cent last month to a 544,000 annualised pace, a Commerce Department report showed on Wednesday. For all of 2015, purchases climbed 14.6 per cent to 501,000. Employment gains and attractive mortgage rates combined to push new-home sales forward for a fourth straight year. Sustained hiring and income growth would provide further impetus for the market, encouraging more construction and contributing to the economy.