« Calif. Minimum Wage to Reach $10 an Hour by 2016 | Main | Jeff Bezos: "Washington Post" Could Take a Page from Amazon »

New Home Sales Rise 7.9% in August

iStockphoto/Thinkstock(WASHINGTON) -- Homebuyers jumped back into the market last month after cutting back in July.

Sales of new homes last month were up 7.9 percent over July, to an adjusted annual rate of 421,000, according to the U.S. Department of Housing and Urban Development and the Census Bureau. That’s 12.6 percent above the August 2012 estimate.

“We're still barely half way back to where we should be,” said David Crowe, chief economist and senior vice president at the National Association of Home Builders. “We've got a long path ahead of us. But like any journey you look at every milepost as more of an accomplishment.”

“The encouraging part of this rebound in August is that it appears consumers have adjusted to higher mortgage rates and have come back into the market,” Crowe said.

The average price of a new home sold in August was $254,600.

Copyright 2013 ABC News Radio

ABC News Radio