Housing data offers mixed picture: White House

CRAWFORD, Texas (Reuters) - It will take more time for the U.S. economy to work through the housing downturn, the White House said on Tuesday after a record plunge in prices for U.S. homes in June was reported along with lower-than-expected new home sales in July.

"The data today paint a mixed picture, but it's clear it will still take some time to work through the downturn in housing," White House spokesman Tony Fratto said in Texas where U.S. President George W. Bush was spending time at his ranch.

"Once housing prices stabilize that will signal a return to a housing industry that can contribute to economic growth," he said.

Sales of newly constructed U.S. single-family homes in July were lower than economists expected, but higher than the pace seen in June, which was the slowest in nearly 17 years. Additionally the inventory of homes shrank 5.2 percent.

Meanwhile, U.S. home prices fell a record annual 15.9 percent in June, but the monthly rate of decline slowed from May, a possible sign that the decimated housing sector may be stabilizing, according to Standard & Poor's.

The S&P/Case-Shiller composite index of 20 metropolitan areas slipped 0.5 percent in June from May, bringing the measure of home prices down 15.9 percent from June 2007. The month-over-month drop in the 20-city index was the smallest since July 2007.

(Reporting by Jeremy Pelofsky; Editing by James Dalgleish)