Regionally, the Midwest led July's housing strength, with home sales there up 16 percent. Home sales jumped 10.1 percent in the South, but they plummeted 9.1 percent in the Northeast and eased 0.4 percent in the West.
Inventories of new homes hit a more than five-year high of 330,000 in July, up from 327,000 in June. But consumers are snapping up the homes at an even faster pace than they are being placed on the market.
In July, the supply of new homes fell to 3.9 months worth from 4.2 months in June.