New home sales surged 5.7% m/m to 313,000 in September, which was much stronger than the 300,000 expected by consensus after sales slipped 0.3% to 296,000 the month before. Sales in the south and the west reported monthly gains (up 11.2% and 9.7%, respectively), while the northeast and the midwest saw declines (down 4.2% and 12.2%, respectively). Total new home sales are down 0.9% from last year, on sharp year-over-year declines in the northeast and midwest (down 34.3% and 14%, respectively). The south was up 9.8% over last September while the west was flat. The months’ supply of homes dropped to 6.2 months from 6.6 months in August, and near the 5.5 to 6 month historic average. The median price fell to $204,400 from $210,900 in August, and is down 9.9% over last September. The stronger than expected headline reading will likely support markets today as they await European summit news.