Sales of new homes rose a modest...

Sales of new homes rose a modest 0.5% in July, the government reported, but recent increases in mortgage rates have analysts worried that the two-month upturn in sales will be short-lived. The Commerce Department said new single-family homes were sold at a seasonally adjusted annual rate of 653,000 units in July, following a revised 1.1% increase in June. The July increase was accompanied by a slight easing of price pressures. The median price of a new home fell by $1,000 to $107,000, the first monthly price decline since February.