New home sales fell in July, but there's a silver lining in the clouds

Sales of new homes fell in July, according to the Census Bureau and HUD. While July’s rate was 12.8% below June, it’s important to note that June’s figures were upwardly revised to a rate of 728,000 and remains 4.3% higher than a year earlier when it was 609,000. The correction of June’s figures is a substantial one. When the data initially came out last month, the report showed that new home sales increase 7% over May. Now, the new data shows that new home sales actually rose by more than 20% in May.