New Home Sales Crater 2.5%

Sales of new single-family houses in the U.S. fell by far more than expected in June.

The Commerce Department said that new home sales fell 2.5 percent in June compared to the previous month. New homes sold at a seasonally adjusted annual rate of 697,000, according to Commerce Department data released Wednesday.

Sales were expected to fall to a 725,000 after the May report of 763,000. The prior month was revised down to 715,000.

Despite the decline, sales were 23.8 percent above the year-ago level.

The median price of a new home fell to $415,400 from $417,300 a month ago.