New-home sales fell 6.6% in June, according to the government's latest report, in which sales data for the previous two months were revised downward by 40,000 units.The U.S. Census Bureau reported that sales of new single-family homes fell from a seasonally adjusted annual rate of 893,000 in May to 834,000 in June, which is 22.3% below the level recorded in June 2006. The June sales report also shows that builders have a 7.8-month supply of homes for sale and made no progress in reducing their inventories. Separately, the Federal Reserve Board reported that residential construction and sales activities "continued to decline" in June and early July in most parts of the United States. "Two notable exceptions were the Cleveland and Richmond regions, which experienced slight increases in sales," according to the Fed's Beige Book.

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