NEW U.S. single-family home sales rose more than expected in November and consumer sentiment hovered near a 13-year high this month, strengthening the view that the economy will gain further momentum next year.

    President-elect Donald Trump’s plan to cut taxes and increase infrastructure spending is expected to boost economic growth, though it already has sparked a surge in mortgage rates that could hurt the housing market in the long term.

    “Homebuyers are confident in their futures and this means the outlook is likely to be brighter next year than we thought,” said Chris Rupkey, chief economist at MUFG Union Bank in New York.

    The Commerce Department on Friday said new home sales increased 5.2 percent to a seasonally adjusted annual rate of 592,000 units last month. That was the second highest pace since 2007. Economists had forecast single-family home sales, which account for about 9.5 percent of overall home sales, rising 2.1 percent to a 575,000-unit rate last month.

    Sales rose 16.5 percent from a year ago, boosted by a 43.8 percent jump in the Midwest to a nine-year high. Sales surged 7.7 percent in the West, their highest level since January 2008, but fell 3.1 percent in the South. They were unchanged in the Northeast.

    Separately, the University of Michigan said its consumer sentiment index edged up to a reading of 98.2 from 98 earlier this month. That was the highest reading since January 2004.

    The University of Michigan said a record 18 percent of respondents “spontaneously mentioned the expected favorable impact of Trump’s policies on the economy.” Consumers anticipated that a stronger economy would create more jobs, with the share expecting higher income rising to a one-year high.(SD-Agencies)