New home sales increased 6.6% in September, the second month of gains, but still 21.5% below last year’s level when the tax credit was in place. The seasonally-adjusted annualized rate of 307,000 is roughly what economists had expected. Sales of existing homes also increased 10%, which was also more than expected, lending support to some who believe housing demand hit a bottom in late summer. The government estimates there is an 8 months supply of unsold homes, which is down from an 8.6 month supply in August. The stock of unsold houses fell 1% from August and dropped 19% from Sept. 2009.