WASHINGTON -- A large rebound in June sales of new homes reported yesterday by the Commerce Department reinforced the belief among private analysts that the U.S. economic recovery is on track.

Sales of single-family homes surged 7.4%, to a seasonably adjusted annual rate of 525,000, more than making up for a revised 3.2% decline in May to 489,000, according to the department's Census Bureau. The June pace of sales was the fastest since last August, when the economy began slipping into recession.

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