Market still strong, despite some dips

Sales and prices of U.S. homes continued strong in June as buyers rushed to take advantage of low mortgage rates.

Although new home sales dipped 0.8% to a seasonally adjusted 1.326 million in June, they were the second highest on record, the Commerce Department reported Tuesday. Single-family home sales dropped from a record 1.337 annual pace in May. The median selling price increased 1.7% to $209,900 in June from a month earlier.

A report released a day earlier by the National Assn. of Realtors showed June sales of previously owned homes increased for the fifth consecutive month, rising 2.1% to a record 6.95 million annual pace. The median selling price rose 5.2% to a record $191,800 from $182,000 in May.