New Home Sales Plunge 32.7% in May to a seasonally adjusted annual rate of 300,000 the lowest since 1963 when the reporting began. New home sales is a small part of the overall housing market, accounting for just 8% of homes sold in April. The 32.7% decrease was also a record. The sharp drop followed two big increases that reflected buyers rushing to market before the tax credit expired. The decline exceeded what had been dire expectations, and is likely to raise fears about housing and keep mortgage rates a historic lows.