US home sales fall to record low in July

US mortgage levels fell to yet another record low in July, with existing home sales plunging 27% during the month, sparking renewed fears of a double dip.

According to the report by government owned mortgage provider Freddie Mac, new home sales were down 12% to their lowest level since the survey began in 1971, after a raft of weak US housing data in the past few weeks.

It is the ninth month in the last 10 that mortgage rates in the US have fallen according to the survey. It also revealed that the average 30 year fixed mortgage rate fell to 4.36%, from 4.42% in the previous week.

Freddie Mac's deputy chief economist Amy Crews Cutts said: 'Existing home sales plunged 27% in July while new home sales fell 12% to a record all time low which led to some  market concerns that the housing market may slow the economic recovery.'

The gloomy numbers will fuel fears that the US economy could be facing a double dip recession.

Yields on 10 year US treasuries have already fallen to their lowest level since the height of the global credit crisis, falling to 2.42% this week.