News Summary: US home sales jump 7.8 percent

SALES RISE: U.S. sales of previously occupied homes soared in August to the highest level since May 2010, when sales were bolstered by a government tax credit. Sales rose 7.8 percent to a seasonally adjusted annual pace of 4.82 million, the National Association of Realtors said.

ADDS MOMENTUM: In a separate report Wednesday, the government said builders broke ground on more new homes last month. The two reports indicate the housing recovery is gaining momentum. Home prices are also rising and builders say they are more confident.

BROADER BENEFIT: Rising home prices usually make Americans feel wealthier and spend more. Consumer spending drives 70 percent of growth.