New US home sales show biggest drop in 13 years

Published: Wednesday February 28, 2007

Sales of new US homes plunged 16.6 percent in January, marking the sharpest fall since January 1994, the government said Wednesday.

The Commerce Department said new home sales slumped by more-than-expected in January to an annualized clip of 937,000 homes, defying most economists who had only expected sales to fall to 1.08 million.