U.S. new home sales up 0.7% in October

WASHINGTON (AP) – Nov. 26, 2014 – Sales of new U.S. homes edged up modestly in October, led by a big jump in activity in the Midwest.

The Commerce Department says new home sales advanced 0.7 percent last month to a seasonally adjusted annual rate of 458,000. That followed a smaller 0.4 percent gain in September and put sales at the highest point since May.

The strength last month came from a big 15.8 percent increase in sales in the Midwest and a smaller 7.1 percent rise in the Northeast. Those increases offset a 1.9 percent fall in sales in the South, which accounts for half of the new-home market, and a 2.7 percent drop in the West.

Housing has struggled to recover since the recession ended in June 2009.