Sales of new homes climbed in August to the highest level in almost a year as builders cut their
prices to compete with the foreclosures now flooding the market with previously owned homes.
Home sales increased 0.7% to an annualized pace of 429,000 units; assisted in part by first-time buyers taking advantage of tax credits before the November deadline. But that figure was still less than had been anticipated. Federal Reserve policy makers this week pledged to keep borrowing costs low to sustain the recovery past the time when the government stimulus measures wane. Thanks for nothing.