US new home sales drop less than expected in June, raising faint hopes for less bleak future

Sales of new homes fell in June for the seventh time in the past eight months, but the decline was less than had been expected, raising faint hopes that the severe U.S. housing recession could be approaching a bottom. The Commerce Department reported Friday that sales of new single-family homes dropped by 0.6 percent last month to a seasonally adjusted annual rate of 530,000 units. That was less than half the decline that had been expected and the May performance was revised up a bit. Even with the changes, new home sales were down by a sharp 33.2 percent from a year ago, showing how severe the slump in housing has become. But some analysts said they saw cause for optimism that the worst of the decline could be drawing to a close, especially if a sweeping housing rescue package now pending in Congress can slow a flood of... [read full story]