New home sales up more than expected in March

WASHINGTON (Reuters) - New U.S. single-family home sales increased more than expected in March and the supply of new houses on the market hit their lowest since August 1967, a government report showed on Monday, but prices fell from a year ago.

The Commerce Department said sales rose 11.1 percent to a seasonally adjusted 300,000 unit annual rate, after an upwardly revised 270,000 unit pace in February.

Economists polled by Reuters had forecast new home sales climbing to a 280,000-unit pace last month from a previously reported record low 250,000 unit rate.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)