Housing Sales Off 5.6% Despite Lower Interest

WASHINGTON — Despite a recent period of falling mortgage rates, housing sales in August dropped 5.6%, the government said today. August factory sales, however, were up by 0.9%.

The departments of Commerce and of Housing and Urban Development reported that new single-family homes were sold in August at an annual rate of 705,000, compared to a July rate of 747,000 annual sales.

Experts had predicted that the mortgage rate decline would boost housing sales.

While the August figure represented a sharp drop from July, the government revised the July increase upward to 5.5% instead of the previously reported 1.4% gain.

Meanwhile, the Commerce Department also reported today that orders to U.S. factories rose a moderate 0.9% in August, partially reversing a 1.2% decline in July.

The increase, which put orders at a seasonally adjusted $197.5 billion in August, stemmed from a 2.6% advance in demand for durable goods, items expected to last three or more years, which offset a 1.1% drop in orders for nondurable goods.

The durable goods increase was originally reported as a stronger 3.4% advance.