New home sales drop in U.S., missing estimates

WASHINGTON — Sales of new single-family homes in the U.S. fell to a seasonally adjusted annual rate of 635,000 in July, according to new U.S. government data. That figure marks a 12.8% plunge from the revised June rate, but is 4.3% above last July’s estimate. June’s sales were revised significantly higher to 728,000 from the 646,000 originally reported, bringing them to a 12-year high and indicating that lower borrowing costs may be encouraging buyers. In a Bloomberg survey, economists on average expected sales to increase to 647,000.