Home Sales Show Surprise Rise

New-home sales in July fell sharply from a year earlier, but they unexpectedly rose 2.8% from June, as contracts in the Western region of the U.S. spiked.

The U.S. Census Bureau said new-home sales reached an annual rate of 870,000 units in July, down 10.2% from a year earlier. Economists expected a rate of 825,000 home sales, according to estimates from Reuters.

The Census Bureau also revised the June sales number upward to an annual level of 846,000 units, compared with the previous estimate of 834,000.

Sales in July rose 22.4% from June in the West, but tumbled 24.3% in the Northeast. Sales were roughly flat in the Midwest and South. ...