Existing Home Sales Plunge 27.2%

Sales of existing home plunged 27.2% in July, the third straight monthly decline, the National Association of Realtors said Tuesday.

Sales fell to an annual rate of 3.83 million units, the group said in its monthly report, following a 5.1% downturn in June.

The drop was greater than economists’ forecasts of a decline to a 4 million to 5.3 million annual rate, from June’s previously reported 5.37 million, Bloomberg reported.

An $8.800 home-purchase tax credit that expired at the end of April helped contribute to higher sales earlier this year, Bloomberg said.

The number of previously owned homes rose 2.5%, due in part to higher foreclosure rates, Bloomberg said.