New homes sales dropped unexpectedly in September

New homes sales unexpectedly fell 3.6 percent in September to a seasonally adjusted annual rate of 402,000, the U.S. Commerce Department announced Wednesday, as the end of the $8,000 federal tax credit for first-time home buyers neared.

Economists surveyed by Bloomberg had expected September new home sales to register a 440,000 annualized rate. Also, August's new home sales were revised lower to a 417,000 annual rate from the previously announced total of 429,000; new home sales totaled 413,000 in July, and 399,000 in June.