Sales of new homes jumped up 4.1 percent in the month of August, according to a joint report by the U.S. Census Bureau and the Department of Housing and Urban Development. Although the number was an improvement over July's, it was 17.4 percent below that of August 2005.

"Last month's uptick in new home sales is good news for the housing market. Long-term interest rates have plummeted in the last month, which will provide some much needed support for the housing market in the coming months."