WWMT - wwmt.com - Search Results The following is an archived video story. The text content of that video story is available below for reference. The original video has been deleted and is no longer available. US new-home sales plunge as mortgage rates riseWASHINGTON (AP) - Americans cut back sharply in July on their purchases of new homes, a sign that higher mortgage rates may weigh on the housing recovery.The Commerce Department says new-home sales dropped 13.4 percent to a seasonally adjusted annual rate of 394,000. That's down from a sales pace of 455,000 in June, which was revised sharply lower from a previously reported 497,000.Other reports suggest higher mortgage rates could be slowing the housing market's momentum. In July, builders started work on the fewest single-family homes in eight months. And mortgage applications from potential buyers have fallen since rates have risen more than a full percentage point.Still, most economists expect the housing recovery will persist. Even after July's steep drop, new-home sales were 7 percent higher than 12 months earlier.