US new home sales drop more than expected in July
Sales of new US single-family homes fell more than expected in July, according to official data released on Wednesday.
Figures from the Commerce Department showed new home sales fell 9.4% from June's revised rate of 630,000, versus expectations for a smaller decline to 612,000.
On the year, sales were down 8.9% from the July 2016 estimate of 627,000. Meanwhile, the median price of a new home was $313,700, down from $311,600 in June.
The seasonally-adjusted estimate of new houses for sale at the end of last month was 276,000, which represents a supply of 5.8 months at the current sales rate.
Pantheon Macroeconomics said the data was disappointing but we should expect an August rebound.
"The trend in new home sales has risen this year, and inventory remains tight, though the number of homes for sale has risen by 16% over the past year. Prices are rising too, but the data are so volatile that it's hard to be sure what the underlying trend rate of increase is at any given point. With the labour market strong, the biggest threat to the new homes market right now is the tightening of mortgage lending standards in recent months, though we don't expect that to continue."