New homes sold at an annual rate of 497,000 in June, up 8.3% from May, which was revised downward. June sales were well above the 483,000, that economists surveyed by Briefing.com were expecting,
It was the highest pace of sales since May 2008, when they reached 504,000.
Sales were 38% higher from the same period last year.
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The report comes a day after the National Association of Realtors reported that sales of existing homes stumbled last month, which some experts called a possible side effect of rising mortgage rates lately.
The 30-year mortgage rate recently rose to its highest level in nearly two years to 4.51%.
The higher rates dragged down the pace of home building last month.
Record low mortgage rates, coupled with a drop in foreclosures, had helped boost the housing market over the past year. As a result, home sales, prices and construction had surged earlier this year.
But in the last 10 weeks, mortgage rates began a steady climb, raising the cost of buying a home. Rates, however, are still low by historical standards.