Sales of New Homes Up 10.6%

New home sales increased 10.6% in September to a seasonally adjusted annual rate of 690,000, the Commerce Department said today, and industry analysts said the rise sets the stage for renewed residential construction.

The gain in single-family home sales largely offset a 10.2% decrease between July and August, when sales fell from an annual rate of 695,000 to 624,000. The September increase was the largest since March, when sales rose 24.7% to 924,000, an eight-year high.