US new house sales up in February

WASHINGTON: Purchases of new homes in the US rose in February from a record low as plummeting prices and cheaper mortgage rates lured some buyers.

Sales increased 4.7% to an annual pace of 337,000 after a 322,000 rate in January, the Commerce Department said. The median sales price fell 18% from February 2008, the biggest year-on-year drop since records began in 1964, and the glut of properties dwindled.

Demand for new homes has been limited by the highest jobless rate in a quarter century, indicating housing may not rebound quickly.