Sales of previously-owned homes in the US tumbled by 2.6 per cent in June, much more than forecast by economists, spreading more gloom across the damaged US housing industry.

According to the National Association of Realtors, existing home sales dropped from an annual rate of 4.99m units in May to 4.86m units last month – the lowest in a decade and 15.5 per cent below its pace in June 2007.