New Home Sales Drop Sharply in July

WASHINGTON ?EUR??,,????'??+ U.S. new home sales fell more than expected in July to the their lowest pace since December, as higher mortgage rates cooled the housing market, according to a Commerce Department report released on Wednesday. Sales of new homes tumbled 6.4 percent to a seasonally adjusted annual rate of 1.134 million units last month from a downwardly revised 1.211 million in June, the report noted. The average rate on a 30-year fixed mortgage fell to 5.81 percent in the U.S. this week, the lowest in five months, according to McLean, Virginia-based Freddie Mac, the second- biggest purchaser of U.S. mortgages. The 30-year rate reached a record low of 5.21 percent last year. Inventories of homes available for sale at the current sales pace ballooned to a 4.2 months' supply, the highest level since February 2003. Sales of new homes plummeted 15.9 percent to 522,000 in the South, the region where most new homes are sold. Sales dipped 1.7 percent to 290,000 in the West, and collapsed by 23.5 percent in the Northeast to 62,000. Sales rocketed to a new high in the Midwest, rising 21.5 percent to 260,000. Sales of existing homes also dipped last month, but still posted the third highest pace on record, according to a National Association of Realtors report released on Tuesday. Total New Houses Sold During Period: 1,134,000 Percent change from last month: -6.4 Percent change from last year: -1.9 New Houses Sold During Period By Construction Stage?EUR??,,????'??+Survey: Total sold: 100,000 Homes sold but not started: 40,000 Homes sold and under construction: 36,000 Homes sold and completed: 24,000 Houses Sold by Sales Price: % Distribution?EUR??,,????'??+Survey Total: 100,000 100% Under $100,000 5,000 5% $100,000 - $124,999 6,000 16% $125,000 - $149,999 13,000 13% $150,000 - $199,999 23,000 23% $200,000 - $249,999 15,000 15% $250,000 - $299,999 9,000 9% $300,000 and over 28,000 28% (Percentages may not add up to 100 due to rounding)