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.