U.S. Economy: Home Sales Rise, Durable Orders Slow

U.S. sales of new homes rose to the second-highest level on record in May at the same time corporate purchases of durable goods unexpectedly stagnated, evidence economic growth has become more dependent on the housing boom.

Home sales rose 2.1 percent to a 1.298 million annual rate, second only to the 1.306 million pace in October, the Commerce Department said today. Excluding a surge in aircraft demand, factories received 0.2 percent fewer orders for items made to last at least three years, Commerce also said.