New home sales drop 7.6% in August nationwide but rise in the West

Sales of new homes retreated in August, one month after surging to the highest level in nearly nine years. Activity fell in all regions of the country except the West. New home sales dropped 7.6% last month to a seasonally adjusted annual rate of 609,000 units, the Commerce Department reported Monday. That followed a surge in sales in July, when they jumped 13.8% to a rate of 659,000, the fastest pace since October 2007. Sales had been expected to slow after the July surge.