US home sales hit three-year high as GDP revised up

Sales of previously owned US homes rose in November to their highest level in three years, figures have shown. The National Association of Realtors (NAR) said sales rose 5.9% to a seasonally adjusted annual rate of 5.04 million last month.

Meanwhile the economy grew faster than previously thought in the third quarter, at an annualised rate of 3.1%. The Commerce Department had previously estimated that growth hit 2.7% in the three months to September.

"Momentum continues to build in the housing market from growing jobs and a bursting out of household formation," said NAR chief economist Lawrence Yun.

The US unemployment rate fell to a four-year low of 7.7% in November, and has been steadily falling from its recent peak of 10.1% in October 2009.

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