The U.S. Commerce Department announced on Wednesday that the sales of new single-family homes surged 7.9 percent m-o-m to a seasonally adjusted annual rate of 764, 000 units in January, the highest level since July of 2007.

Economists had forecast the sales pace of 710,000 last month.

December's sales pace was revised up to 708,000 units (+2.3 percent m-o-m) from the originally reported 694,000 units (-0.4 percent m-o-m).

According to the report, the January climb in purchases of new homes was due to gains in three of four U.S. regions, led by the Midwest (30.3 percent m-o-m) and West (+23.5 percent m-o-m).

In y-o-y terms, new home sales recorded an 18.6 percent jump in January.