New Home Sales Drop to Five-Month Low

New U.S. single-family home sales fell more than expected in July to hit a five month low and the prior month's pace was revised down, though the supply of homes available on the market dropped to a record low.

The Commerce Department said on Tuesday sales slipped 0.7% to a seasonally adjusted 298,000-unit annual rate, the lowest since February. June's sales pace was revised down to 300,000 units from the previously reported 312,000 units.

Economists polled by Reuters had forecast sales at a 310,000-unit rate. In the 12 months through July, new home sales rose 6.8%.