July home resales rise to highest level since February 2007

Washington

PURCHASES of previously owned US homes unexpectedly rose in July to the highest level since February 2007, consistent with further strength in the housing market.

Contract closings increased 2 per cent to a 5.59 million annualised rate from the prior month's revised 5.48 million pace, figures from the National Association of Realtors showed on Thursday. The median forecast in a Bloomberg survey called for a drop to 5.43 million. Prices rose and inventory shrank.

Employment gains and low borrowing costs are helping encourage trade-up purchases, providing a little more fuel for the economy. The data and a report earlier this week showing the strongest pace of new construction since 2007 are consistent with the Federal Reserve's view t…