(Mike Blake/Reuters)

New home sales rose more than expected in April.

Data from the Census Bureau showed that new home sales rebounded and rose 6.8% to an annual rate of 517,000.

Economists had expected that new home sales rose 5.0% to an annual rate of 505,000.

In March, home sales plunged 11.4% to an annual rate of 481,000, far below expectations.

Following the release, Barclays economists wrote in a client email:

"The rebound in sales is encouraging, and we think it suggests underlying resilience in the housing recovery. Strong rebounds in both housing starts and homes sales for April, after the weather-related weakness in during Q1, suggest that housing activity is returning to normal and the recovery remains on track, a view supported by the housing appreciation data released earlier this morning."

Earlier, the latest S&P/Case-Shiller home price index showed that home prices rose more than expected in March.

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