New-home sales fell 9.9 percent in August

New-home sales fell 9.9 percent in August: "WASHINGTON -- Sept. 28, 2005 -- Sales of new homes fell a surprising 9.9 percent in August from July to a seasonally adjusted annual rate of 1.24 million units -- the biggest decline since a 10 percent plunge in November 2004, according to the U.S. Commerce Department. Sales rose 6.2 percent compared to the same month one year earlier, however.

The federal government report sends a mixed signal on whether the housing market is slowing, considering that the median sales price jumped 2.5 percent from the previous month to $220,300 and that the National Association of Realtors� reported earlier in the week that housing resale activity rose 2 percent last month to 7.29 million units -- the second-highest rate on record.

Rising mortgage rates finally may be affecting the housing market, according to some economists. Nonetheless, they still expect 2005 to be the fifth consecutive year in which a record number of new and previously owned homes are sold."