Sales of new U.S. homes dropped 13.4% to a seasonally adjusted annual rate of 394,000 in July, the lowest rate since October, as all four regions posted declines, according to government data released Friday. Economists polled by MarketWatch had expected sales to pull back in July to a rate of 485,000, compared with an original June estimate that pegged the rate at 497,000. On Friday the U.S. Department of Commerce revised June's rate to 455,000. Rising mortgage rates may be behind July's drop, though the monthly data are quite volatile and economists had expected some pull back after sales gains in recent months. ... (full story)