July New Home Sales Fall 4.7%

New home sales suffered their steepest drop in seven months in July, the government said today, and economists predicted further softening as rising mortgage interest rates push up the cost of buying a home.

Sales of new single-family homes fell 4.7% to a seasonally adjusted annual rate of 686,000 units last month, according to a joint report of the Departments of Commerce and Housing and Urban Development. The government also revised estimates for June and May downward.