New-home sales rise to 421,000 rate in August

WASHINGTON (MarketWatch)
Sales of new U.S. homes rose 7.9% to a seasonally adjusted annual rate of 421,000 in August, rebounding after a large drop in July, as three of four regions posted gains, according to government data released Wednesday
Economists polled by MarketWatch had expected sales to climb higher in August to a rate of 420,000, compared with an original July estimate that pegged the rate at 394,000
On Wednesday the U.S. Department of Commerce revised July's rate to 390,000
Pent-up demand and relatively low interest rates are supporting sales, though there's concern that rising mortgage rates are cutting into the housing market's recovery
Looking longer-term, new-home sales in August were up 12.6% from the year-earlier period
The median price of new homes was $254,600 last month, up 0.6% from the year-earlier period
The supply of new homes on the U.S. market fell to five months at the current sales pace from 5.2 months in July