The U.S. Commerce Department announced on Wednesday that the sales of new single-family homes surged 7.0 percent m-o-m to a seasonally adjusted annual rate of 646, 000 units in June.

Economists had forecast the sales pace of 660,000 last month.

May’s sales pace was revised down to 604,000 units from the originally reported 626,000 units.

According to the report, new home sales in the South, the largest area, increased 0.3 percent m-o-m in June to a 13-month high, while sales in the West climbed 50.4%, recording the biggest gain since August 2010 after 38.5% plunge in May. Meanwhile, sales in the Midwest tumbled 26.3% to their lowest level since September 2015, and sales in the Northeast dropped to their lowest level in eight months.

In y-o-y terms, new home sales recorded a 3.7 percent drop in May.