Home Sales Surge

"Thank goodness for home sales."

That's what many economists are saying once again, as the reported figures of new home sales continue climbing, helping the U.S. economy avoid further problems.

Sales of new homes jumped 5.7 percent in November, defying expectations that the home market would limp through the last two months of the year. Sales were particularly strong in the Midwest, surging 41 percent from October to set a new record. By contrast, home sales in the Northeast plunged 26.7 percent after dropping nearly 37 percent in October. New home sales in the South climbed 2.4 percent while the number of such sales in the West dropped nearly 4 percent.

Apparently, the low mortgage rates and sagging stock markets continue driving people to invest in their housing. While many observers think the housing market simply has to weaken at some point, interest rates that haven't been seen since the 1960s still represent a strong incentive for many home buyers.