The U.S. Commerce Department released new home sales data on Tuesday. New home sales increased 6.8% to a seasonally adjusted annual rate of 517,000 units in April from 484,000 units in March.

March's figure was revised up from 481,000 units.

Analysts had expected new home sales to reach 510,000 units.

The increase was driven by higher sales in the Midwest. New home sales in the Midwest climbed 36.8% in April.

The median sales price of new houses sold was $285,500 in April, up from $274,500 in March.