US new home sales drop in July

US NEW home sales in July fell more than forecast to a 1.134 million annual rate, the slowest of the year and a sign housing will provide less fuel for the economy in the coming months.

Single-family home purchases dropped 6.4% from a 1.211 million annual pace in June, the Commerce Department said. New home sales reached a record 1.283 million rate in May.

Home sales will have trouble exceeding May’s pace because demand has been satisfied.