New-home sales in January drop 12.6 pct

Obamaville continues to disappoint.

WASHINGTON (AP) -- Sales of new homes fell significantly in January, a dismal sign after the worst year for that sector in nearly a half-century.

New-home sales dropped to a seasonally adjusted rate of 284,000 homes last month, the Commerce Department said Thursday. That's down from 325,000 in December and less than half the 600,000-a-year pace that economists view as healthy.