WASHINGTON (AP) — HOME SALES UP: Sales of new homes rose 7.6 percent in May to a seasonally adjusted annual rate of 369,000. That was the fastest pace since April 2010 when buyers were rushing to take advantage of expiring federal tax credits for home purchases.

HOME PRICES: The median price of a new home edged down 0.6 percent in May to $234,500 compared to April. But the May price was 5.6 percent higher than the same month one year ago.

OUTLOOK: The increase in sales suggests a modest recovery is continuing in the U.S. housing market despite weak job growth. Still, the sales pace is just half the 700,000 that economists consider to be healthy.