U.S. new-home sales in July were below expectations, according to data showing the median price dropped further as high inventory prolongs Amerida’s housing slump.

Sales of single-family homes increased by 2.4% last month to a seasonally adjusted annual rate of 515,000, the U.S. Commerce Department said today. Economists had forecast a July sales rate of 520,000.

June new-home sales fell 2.1% to an annual rate to 503,000; originally, the government said June sales decreased by 0.6% to 530,000. May sales fell 5.2% to 514,000; earlier, Commerce estimated May down 1.7% to 533,000.

The median price of a new home decreased by 6.3% to US$230,700 in July from US$246,200 in July 2007. The average price dropped by 4.1% to US$294,600 from US$307,100 a year earlier. In June, the median price was US$230,100 and the average was US$296,500.

In a separate report, the S&P/Case-Shiller home-price indexes, a closely watched gauge of U.S. home prices, again hit record lows in June, but the declines appeared to be moderating.

A third release, from the Office of Federal Housing Enterprise Oversight which tracks mortgages issued by Fannie Mae and Freddie Mac, showed a 4.8% decline in home prices in the second quarter from a year earlier.

Meanwhile, U.S. consumer confidence improved in August.

The U.S. Conference Board said its index of consumer confidence for August rose to 56.9, compared with 51.9 in July. The current month’s reading was above economists’ expectations for 53.5.

“Consumer confidence readings suggest that the economy remains stuck in neutral, but may be showing signs of improvement by early next year,” said Lynn Franco, director of the Conference Board Consumer Research Center, in a release.

The present situation index, a gauge of consumers’ assessment of current economic conditions, fell to 63.2 from 65.8 in the prior month.

Consumer expectations for the state of economic activity over the next six months jumped to 52.8 from 42.7 in July.