Shares of housing market companies enjoyed a broad rally Friday, after data showing that new home sales surprisingly rose, and sharply, in the face of other signs showing a slowdown in the housing sector. The SPDR S&P Homebuilders ETF /zigman2/quotes/202739297/composite XHB +0.39% rallied 2.9% in morning trading, with all 35 components trading higher. Among the more active home builders, shares of Lennar Corp. /zigman2/quotes/202536373/composite LEN -0.65% hiked up 2.1%, D.R. Horton Inc. /zigman2/quotes/202032328/composite DHI +0.42% rose 1.7% and PulteGroup Inc. /zigman2/quotes/201694804/composite PHM +0.48% climbed 2.1%. Also in the homebuilders ETF, Home Depot Inc.'s stock /zigman2/quotes/208081807/composite HD -0.17% gained 1.7% and Builders FirstSource Inc. shares /zigman2/quotes/208924960/composite BLDR +2.13% surged 6.3%. In the real estate services space, shares of Redfin Corp. /zigman2/quotes/203726414/composite RDFN -3.81% jumped 2.4% and Anywhere Real Estate Inc. /zigman2/quotes/201151464/composite HOUS -0.25% climbed 2.0%. The U.S. Commerce Department said Friday that new home sales rose 10.7% to a seasonally adjusted rate of 696,000 in May from a revised 629,000 in April, while expectations were for a decline to 587,000 from an initial April estimate of 591,000. That followed data last week that showed existing home sales falling for the fourth-straight month, and housing starts that dropped to a two-year low.