Home sales in US during the month of July have fallen down bigger-than-expected. This has led to the renewing of fear that the US economy may be heading towards double-dip recession.

US home sales went down by 27 per cent, which is the weakest that the sector has shown in last 15 years. As per the National Association of Realtors the fall is also the largest monthly drop in last four decades.

The Dow Jones Industrial Average fell below the 10,000 and has lost 375 points in the last four days since the home sales went down.

Such a scenario has sent jitters amongst the marketers who have started believing that the US economy is shrinking again. High rate of unemployment coupled with high rate of foreclosures is the reason behind this.

Consumer confidence is declining and has led to a reduction in consumer spending.

Midwest region was the worst hit and saw a 35 per cent decline. Even Metro Detroit sales have seen a decline of 19.4 per cent in June to July.

Analysts say that the rise has happened because of the first-time buyers especially after the tax benefit given by the government.