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Data released on Tuesday showed that New Home Sales rebounded more than expected. According to analysts at Wells Fargo buying conditions rebounded sharply over the past month, reflecting lower interest rates and improvement in the job market.

Key Quotes: 

“New home sales once again blew past expectations, surging 16.6% to a 676,000-unit pace. Sales were revised lower by a total of 51,000 homes for the prior 3 months, however, leaving the trend close to earlier estimates.”

“After falling 25% during the prior three months, new home sales jumped 16.6% in May. New home sale have held up better than existing homes, as there are fewer restrictions on showings.”

“Year-to-date sales through May are running 1.9% ahead of last year, which has cut into inventories.”

“Housing remains a bright spot, which seems inconsistent with high unemployment.”