WASHINGTON, July 24 Reuters Sales of new U.S. singlefamily homes fell to a sevenmonth low in June as higher mortgage rates and prices weighed on demand, further evidence that the housing market recovery faltered in the second quarter.

New home sales slipped 0.6 to a seasonally adjusted annual rate of 617,000 units last month, the lowest level since November, the Commerce Department39;s Census Bureau said on Wednesday. The sales pace for May was revised up to 621,000 units from a previously reported 619,000 units.

Economists polled by Reuters had forecast new home sales, which account for more than 10 of U.S. home sales, rising to a rate of 640,000 units. New home sales are counted at the signing of a contract. They, however, can be volatile on a monthtomonth basis. Sales slumped 7.4 on a yearonyear basis in June.

Though the average rate on the popular 30year fixedrate mortgage eased from a sixmonth high of 7.22 in early May, it remained elevated through much of June.

It dropped to a fourmonth low of 6.77 last week, data from mortgage finance agency Freddie Mac showed, amid hopes that the Federal Reserve will deliver a longawaited interest rate cut in September. That could help to stimulate sales in the future.

For now, the housing market remains on the back foot. Data from the National Association of Realtors on Tuesday showing existing home sales slumping to a sixmonth low in June. Singlefamily housing starts and permits also dropped last month.

The housing market…