U.S. home sales tumble as prices surge to record high

U.S home sales fell more than expected in June as a persistent shortage of properties pushed prices to a record high, indicating the housing market was struggling to regain speed since hitting a soft patch last year. Housing and manufacturing are the main areas of weakness in the economy. They are offsetting strong consumer spending, resulting in a slowdown in economic activity that, together with trade tensions and tepid global growth, could see the Federal Reserve cutting interest rates next Wednesday for the first time in a decade. The National Association of Realtors said on Tuesday existing home sales dropped 1.7% to a seasonally adjusted annual rate of 5.27 million units last month. The median existing house price increased 4.3% from a year ago to an all-time high of $285,700 in June.