New home sales surge to highest rate in ten months

New homes sales rose 9.6 percent to a seasonally adjusted annual rate of 433,000 in July -- the highest sales rate in 10 months -- the U.S. Commerce Department announced Wednesday, providing additional evidence that the nation's worst housing slump in a generation is ending.

Further, it was the fourth straight monthly rise for new home sales, which have battled back after sinking to a record-low 329,000 annual rate in January. Economists surveyed by Bloomberg News had expected July new home sales to register a 390,000 annualized rate. Sales totaled a 384,000 rate in June.