New home sales hit the highest they've been in two years

New home sales for the month of September have just been released.{} 389,000 homes sold last month.{} That's the most since April 2010.{} It's up nearly 6% from August.

The new home market has been showing steady signs of improvement.{} It is part of a broader recovery in real estate, helped by a number of factors all coming together.

  1. Mortgage rates are near record lows.
  2. There has also been a drop in unemployment, a positive development for people looking for mortgage loans.{}{}
  3. And foreclosures have fallen to a 5 year low, reducing the supply of distressed homes available on the market.