Sales of new single-family homes fell sharply in the U.S. in July amid high mortgage rates and prices, Reuters reported.

Americans bought 12.6 percent fewer homes last month, a total of 511,000 units, according to data released Tuesday by the Commerce Department in Washington.

June data was also revised up to 585,000 units from 590,000.

Economists polled by Reuters had forecast new home sales, which represent a share of U.S. home sales, to fall to 575,000 units.

Record prices for housing in the United States

But Bloomberg reports that sales of older homes, which make up the majority of the market, also fell for a sixth straight month, hitting their slowest pace since 2016.

Bloomberg notes that the latest drop in sales is indicative of a housing market under pressure from high prices and rising borrowing costs.

The number of houses under construction has decreased, the number of loan applications has decreased, and more and more buyers are reneging on already concluded contracts.

U.S. home prices hit their highest level since last April, raising concerns about a new housing bubble similar to the one that led to the Great Financial Crisis of 2008.