New homes sales rise for second straight month in August

SILVER SPRING, Md. (AP) — Sales of new homes in the U.S. rose modestly in August as rising prices continue to sideline potential buyers. The Commerce Department reported Friday that sales of new homes last month rose 1.5%, reaching a seasonally adjusted annual rate of 740,000. That follows July’s increase, which came after three straight declines in April, May and June as builders grappled with surging lumber prices and a shortage of workers. Prices for new homes also ticked up in August. The median price for a new home rose $400 to 390,900. That’s more than 20% higher than one year ago.