The numbers: Sales of newly built homes in the U.S. fell in June, as home buying demand cooled off after a jump the previous month.
U.S. new home sales fell 2.5% to an annual rate of 697,000 in June, from a revised 715,000 in the prior month, the Commerce Department reported Wednesday.
The number is seasonally adjusted, and refers to how many homes would be built over an entire year if builders continue at the same pace every month.
The jump fell short of expectations on Wall Street. Economists had forecast new home sales to total 725,000 in June.
The fall in home sales was led by a sharp drop in the Midwest.
Overall, new home sales have been higher as home builders are one of the few players offering inventory for home shoppers.
The data from May was revised significantly. New home sales rose to a revised 715,000 in May, compared with the initial estimate of a 12.2% increase to 763,000.
The new home sales data are volatile month-on-month and are often revised.
Market reaction: Stocks
DJIA,
SPX,
were down in early trading on Wednesday. The yield on the 10-year Treasury note fell below 3.9%. Shares of builders, including D.R. Horton, Inc.
DHI,
Lennar Corp
LEN,
PulteGroup Inc.
PHM,
and Toll Brothers Inc.
TOL,
were up in the morning trading session.
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