(Associated Press)       Sales of new homes likely rose in May, possibly at their fastest pace in five years. A sharp increase would add to signs that the housing market is steadily improving.   Economists forecast that sales reached a seasonally adjusted annual rate of 462,000 in May from 454,000 in April, according to a survey by FactSet. That pace that would be the fastest since July 2008. Sales of new homes remain below the 700,000 annual pace that's considered healthy by most economists. But the pace has increased 29 percent from a year ago. The National Association of Realtors reported last week that sales of previously occupied homes surpassed 5 million in May. It was the first time that's happened in 3.5 years. Sales of previously owned homes rose to an annual rate of 5.18 million in May. The last time sales had exceeded 5 million was in November 2009, a month when the pending expiration of a home-buying tax credit briefly inflated sales. Analysts say the housing recovery is looking more sustainable and should continue to boost economic growth this year, offsetting some drag from higher taxes and federal spending cuts. Steady hiring and low mortgage rates have encouraged more people to buy homes. And with demand up, prices rising and few homes on the market, builders have grown more optimistic about their prospects, leading to more construction and jobs. On Wednesday, Federal Reserve Chairman Ben Bernanke cited the housing gains as a major reason the Fed's economic outlook has brightened.Home for Sale image