WASHINGTON (AP) – Sales of new homes jumped last month to the highest level in more than two years, further evidence of a sustained housing recovery that could help lift the lackluster economy.

September sales rate highest since April 2010
389,000 rate is up from 368,000 in August
Sales are up 27% from a year ago

The Commerce Department said Wednesday that new home sales rose 5.7% in September to a seasonally adjusted 389,000 annual rate. That’s up from 368,000 in August and the highest level since April 2010, when a federal homebuyer tax credit inflated sales.

Sales have risen 27.1% in the past year. That’s the strongest yearly gain since February, although sales are still well below healthy levels.

The figures do suggest that the housing recovery is strengthening. The increase follows other reports that show home prices are rising more consistently, builders are starting to build more homes and sales of previously occupied homes have increased in the past year. Faster construction could help boost economic growth and hiring. And it could also encourage more people to put their homes on the market.

For now, rising sales are keeping inventories low. […]