Sales of new single-family homes fell 2.4% to a 412,000 seasonally adjusted annual rate in July, according to data released by the Commerce Department Monday.
The increase came after a revised 7.0% slide to a 422,000 rate in June, originally reported as an 8.1% drop to 406,000.
Thomson Reuters' poll of economists had predicted a 430,000 sales level for July.
Sales of new homes were 12.3% better than the 367,000 rate in July 2013, Commerce said.
The supply of new homes at the current sales rate grew to 6.0 months from 5.6 months in June.
At the end of July, the number of new homes on the market was up to 205,000 from 197,000.
The unadjusted average price of a new single-family home climbed to $339,100 from $332,100.
Meanwhile, the unadjusted median price fell to $269,800 from $280,100 in the previous month.
Sales fell in three of the four regions of the country in the month and rose in one.
Sales in the Northeast plunged 30.8% to 18,000 from 26,000. Sales in the South were up 8.1% to 253,000 from 234,000, sales in the West fell 15.2% to 89,000 from 105,000 and Midwest sales slumped 8.8% to 52,000 from 57,000.
