Sales of new single-family homes in the US jumped in August touching their highest level in the last six years, sending a message that the housing recovery remains on course.

The Commerce Department today released a statement saying that sales jumped 18.0 percent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008. Economists had predicted new home sales rising to only a 430,000-unit pace last month.

The new home sales segment accounts for only 9.1 percent of the housing market, but the surge recorded in August should put to rest fears of renewed housing weakness as the home resales plunged last month.

In August, existing home sales went down for the first-time in four months as investors, who have been supporting the market, stepped away. Some economists, however, maintained that the departure of investors is a positive development for housing.

A survey showed last week that the homebuilder sentiment hit its highest level in nearly nine years in September and builders reported a sharp pick-up in buyer traffic.

But high unemployment and sluggish wage growth continue to hobble the housing. In a separate report, the Mortgage Bankers Association said mortgage applications fell last week. The decline was registered after a jump in the week ending September 12.

The data did not affect the US financial markets much but housing shares tumbled after home builder KB Home (KBH.N) reported earnings that missed Wall Street's expectations. KB HOME shares fell 6.89 percent, while Pulte Group slipped 1.74 percent. Toll Brother dropped 1.27 percent.