New home sales in US jump to fastest pace in three years

US new home sales surge by 20.5% in August, hitting their fastest pace in three years. This rise is driven by builders offering discounts and incentives due to an oversupply of new homes. Despite this jump, the overall housing market remains sluggish due to affordability issues, with only 14% of US home sales coming from new homes. Economists warn that the spike in new home sales in August may not indicate a sustained trend, as the data can be volatile month-to-month.