New Home Sales Surge In June (XHB)

Sales of new U.S. single-family homes rebounded in June after setting a record low in the prior month. The Commerce Department reported this morning that sales jumped 23.6 percent to a 330,000 unit annual rate from a downwardly revised 267,000 units in May.

Analysts were looking for new home sales to rise to a 320,000 unit pace last month. The percentage increase was the largest since May 1980, but the sales pace last month was still the lowest since records started in 1963.

The number of new homes on the market dropped 1.4 percent to 210,000 units, the lowest level since September 1968. Last month's surge in sales saw the supply of new homes available for sale dropping to 7.6 months' worth from 9.6 months' worth in May.

The SPDR S&P Homebuilders ETF (NYSE: XHB) popped after this data was reported and is now up 26 cents, or 1.69%, to $15.68.