WASHINGTON, Aug 25 (Reuters) – Sales of new U.S. single-family homes fell in July following a sharp upward revision to the prior month’s sales pace, and the overall trend remained consistent with a housing market struggling in an environment of high mortgage rates.

The report from the Commerce Department on Monday bolstered economists’ expectations that the housing market slump could persist through the end of the year. Though mortgage rates have eased on expectations that the Federal Reserve would resume cutting interest rates in September, they continue to outpace wage growth, pushing home ownership beyond the reach of many.