The pace of existing home sales in the US rose unexpectedly by 5.5 per cent in September as sharply lower prices attracted buyers in every part of the country except the north-east.

The figures indicate that a bottoming in home sales might be taking hold and that could pave the way for an eventual rebound in the US housing market – the root of the global financial turmoil. But economists cautioned that the stabilisation of home sales reflected buying conditions in July and August and could be threatened by the sudden intensification of the financial crisis last month.