New home sales jumped 24% in June after plunging 37% in May, but it was still the second weakest month on record, according to new figures released by the government.
The U.S. Census Bureau reported that sales of newly constructed single-family homes rose to a seasonally adjusted annual rate of 330,000 in June from a 267,000 rate in May, a month that marked the lowest reading of activity since 1963 when the bureau started reporting the data point.
Both new and existing home sales began to swoon in the weeks after April 30 when the $8,000 federal homebuyer tax credit expired.
Despite the weak reading, the National Association of Home Builders is forecasting that sales will rebound in the second half of this year.
With the tax credit incentive, new home sales averaged 340,000 units in the second quarter. NAHB economists expect a 375,000 rate in the third quarter and a 425,000 one in 4Q.
"The June report is a good bounceback and we hope July will show further improvement," said senior economist Bernard Markstein.
