U.S. new home sales dip in June

New home sales in the U.S. undershot economists' forecasts by a large margin last month.

According to the U.S. Department of Commerce, in seasonally adjusted terms, new home sales declined at a month-on-month pace of 2.5% to reach an annual rate of 697,000.

Consensus had been for a reading of 721,000.

The 'miss' came on top of a downwards revision to May's print, from 763,000 to 715,000.

Nonetheless, at the current sales pace the stock of new homes available to be sold rose to the equivalent of 7.4 months' worth of sales, against 7.2 in May.

Prices for new homes on the other hand were mixed.

The median sales price dipped from $417,300 to $415.400, but the average price rose from $488,700 to $494,700.

In comparison to the month before, new home sales increased in the Northeast and South, but declined in the Mid-west and West.

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