New-Home Sales Tumble to 7-Year Low

Thursday September 27, 6:33 pm ET
By Jeannine Aversa, AP Economics Writer New-Homes Sales Drop 8.3 Percent in August From July, Lowest Level in 7 Years WASHINGTON (AP) -- New-homes sales tumbled in August to the lowest level in seven years, a stark sign that the credit crunch is aggravating an already painful housing slump.

Sales of new homes dropped 8.3 percent in August from July, the Commerce Department reported Thursday, driving down sales to a seasonally adjusted annual rate of 795,000. That was the lowest level since June 2000.