Sales of new US homes rise to second-fastest pace since 2008

New York

PURCHASES of new US homes increased in November to the second-fastest pace in almost nine years as the beginning of a hike in mortgage rates persuaded buyers to quickly sign contracts.

Sales rose 5.2 per cent to a four-month high of a 592,000 annualised pace, Commerce Department data showed on Friday. The median forecast in a Bloomberg survey was for a 2.1 per cent gain to 575,000.

The advance included the largest gain in the Midwest market since October 2012 and the fastest pace of demand in the West in almost nine years. Home sales are closing in on the strongest year in …