Economy, New Home Sales | featured news

Sales of new homes dropped a record 32.7 percent in May to the lowest level in at least four decades as the boost from a popular tax credit faded, adding to worries of a slowing economic recovery.

New home sales soared in April as homebuyers rushed to claim the tax credit that expired at the end of the month.

Better weather and government incentives help March sales rebound from record low.

The 11.2 percent plunge confounded forecasts as transactions were at an ebb unseen since record keeping began in 1963.