Real Estate Troubles Build

Existing-home sales fell a steeper-than-expected 4.1% in July as the inventory of houses on the market hit a record high, signaling further trouble for homebuilders trying to sell new homes.

The National Association of Realtors said Wednesday that total existing home sales came in at a seasonally adjusted annual rate of 6.33 million for July, the lowest sales in two years. The number was below the downwardly revised pace of 6.6 million in June, and 11.2% below the 7.13 million mark in July 2005.

Economists surveyed by Reuters expected an annual sales rate of 6.55 million homes for July. ...