Sales of new single-family homes in the United States rose more than expected in May, with sales in the South reaching their highest level in about 11 years.

The U.S. Department of Commerce said new home sales jumped 6.7 percent to an annualized rate of 689,000 units last month.

Economists polled by Reuters had expected new home sales, which account for about 11 percent of the housing market, by just 0.7 percent to an annual pace of 667,000 units in May.

On a year-over-year basis, new home sales jumped 14.1 percent.

New home sales in the Southern states rose 17.9 percent to an annual rate of 409,000 units in May, the highest level since July 2007. Sales fell 10 percent in the Northeast and 8.7 percent in the West. They remained stable in the Midwest.