New Residential Sales Drop 13.4 Percent in July

Sales of new single-family houses in July were at a rate of 394,000, a 13.4 percent drop from June, according to the U.S. Department of Commerce. The rate is still 6.8 percent above the July 2012 estimate.

"The drop-off in sales in July is in part a reflection of buyers' reaction to the recent uptick in mortgage rates as people reassess their budgets to determine how much house they can afford," said Rick Judson, chairman of the National Association of Home Builders (NAHB), in a statement. "Consumers just need a little time to adjust to the new parameters of the market."

The median sales price of new houses sold in July was $257,200, and the average price for the month was $322,700. The estimated number of new houses for sale at the end of July was 171,000, representing a 5.2-month supply at the current sales pace.