After a 4 percent drop in June, sales of new homes rose 2.8 percent in July to a seasonally adjusted annual rate of 870,000 units, according to the U.S. Department of Commerce.

Sales increased 22.4 percent in the West and 0.6 percent in the South during July. However, sales dropped 24.3 percent in the Northeast and 0.9 percent in the Midwest.

The median price of a new home in July was $239,500, up 0.6 percent from last year. The average home price, however, dropped to $300,800 in July, down 3.4 percent from last year.

Source: Associated Press