WASHINGTON -- Sales of new homes in the United States hit a record in June, with the rate of annual purchases topping a million units for the first time, the government said today.

The Commerce Department said new home sales edged up 0.5 percent in June to a 1,001,000 unit annual rate.

The supply of new homes on the market dipped slightly in June, falling to 3.9 months' supply from 4.0 months' supply. That is the lowest level since December 2001's 3.7 months' supply.