New Home Sales Down

Sales of newly constructed single-family homes fell 3% in August following a huge rebound in July.The U.S. Commerce Department reported that new home sales fell from a seasonallyadjusted annual rate of 921,000 in July to 893,000 in August. Sales had jumped 11.7% from July to July. The NationalAssociation of Home Builders said it had expected a little more of a decline in August. But NAHB economist MichaelCarliner noted that the August number accurately reflects the strength of the new home sales market, which is onlydown 2% from last year's record pace. The NAHB expects that sales will soften in the months ahead, and Mr. Carlinerpointed out that there has been a slowdown in some markets in the Midwest and the deep South. Overall, the homebuildersare pleased with the economy and Federal Reserve Board policy. "We believe the soft landing has happened,"Mr. Carliner said.