The market is reacting on Monday to a surge in U.S. new home sales.

Sales of new-U.S. single-family homes spiked in October to their highest level in 10-years as high demand across the country powers sales.

New home sales rose 6.2% to a seasonally adjusted annual rate of 685,000 in October. That represents the highest level since October 2007 and followed September's slightly downwardly revised sales pace of 645,000 units, the Commerce Department said on Monday.

October marks the third-straight month that new home sales have seen a boost.

Image placeholder title

As a result of Monday's data, shares of the SPDR S&P Homebuilders ETF (XHB) - Get Report , a fund tracking equities in the housing sector, were rising nearly half a percent higher.

But despite the surge in new home sales, individual homebuilder stocks were moving lower in the aftermath.

Shares of homebuilders KB Home (KBH) - Get Report , D.R. Horton (DHI) - Get Report , and PulteGroup (PHM) - Get Report , were all falling after the report from the Commerce Department.

That said, Toll Brothers (TOL) - Get Report was proving resilient with shares inching slightly higher following the release of the data. 

Home improvement stocks were also climbing higher. Both shares of Home Depot (HD) - Get Report and Lowes (LOW) - Get Report were up over 1.2%.

More of What's Trending on TheStreet: