Sharp Drop for U.S. Homes in June

One major barometer of the economy involves how quickly new homes sell.

Sales of new U.S. single-family homes tumbled in June and sales in the prior month were weaker than initially estimated, suggesting the stateside housing market was losing momentum amid soaring prices that are being driven by an acute shortage of properties.

Figures released Monday by the U.S. Commerce Department showed new home sales dropped 6.6% to a seasonally-adjusted annual rate of 676,000 units last month. May’s sales pace was revised down to 724,000 units from the previously reported 769,000 units.

Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, increasing 3% to a rate of 800,000 units in June.