New Home Sales Fell 0.2% in May

Sales of new homes slowed in May for the second straight month, adding further evidence that higher mortgage rates are hampering the strength of the U.S. housing market.

New home sales declined 0.2% in May to a seasonally adjusted annual rate of 875,000, the Commerce Department reported Thursday. The report also sharply revised April sales downward to an 8.6% drop, or an 877,000 annual rate from a previously reported 909,000 rate.

The data are yet another indication that higher mortgage rates, along with dipping consumer confidence, could be weighing on Americans' desire to buy homes. ...