US New Home Sales Plunge in July

Sales of new U.S. single-family homes fell sharply in July as persistently high mortgage rates and house prices further eroded affordability.

New home sales tumbled 12.6% to a seasonally adjusted annual rate of 511,000 units last month, the Commerce Department said on Tuesday. June's sales pace was revised down to 585,000 units from the previously reported 590,000 units.

Economists polled by Reuters had forecast that new home sales, which account for a fraction of U.S. home sales, decreasing to a rate of 575,000 units.