WASHINGTON, June 26 Reuters Sales of new U.S. singlefamily homes dropped to a sixmonth low in May as a jump in mortgage rates weighed on demand, offering more evidence that the housing market recovery was faltering.

New home sales declined 11.3 to a seasonally adjusted annual rate of 619,000 units last month, the lowest level since November, the Commerce Department39;s Census Bureau said on Wednesday. The sales pace for April was revised higher to 698,000 units from a previously reported 634,000 units.

Economists polled by Reuters had forecast new home sales, which account for more than 10 of U.S. home sales, edging to a rate of 640,000 units.

New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. They, however, can be volatile on a monthtomonth basis. Sales slumped 16.5 on a yearonyear basis in May.

The housing market has hit a soft patch, with the resurgence in mortgage rates also undercutting previously owned home sales and home building. Residential investment posted doubledigit growth in the first quarter.

The average rate on the popular 30year fixed mortgage hit a sixmonth high of 7.22 in early May before retreating to 7.03 by the end of the month, data from mortgage finance agency Freddie Mac showed.

Sales plunged 43.8 in the Northeast and slipped 4.5 in the West. They plummeted 12.0 in the densely populated South and decreased 8.6 in the Midwest, which is viewed as a more affordable region.

The median…