that meant home builder stocks suffered big losses with names like ryland, kb home and more. until now, the booming sector was a strong sign the u.s. economy was on the mend. hampton pearson has more. >> reporter: july new home sales may be a test for what higher interest rates can do. sales are down double digits to 394,000 adjusted annual rate, the slowest pace in nine months. june also saw a downward division to 455,000 from 497,000, that's according to the commerce department. >> we've had a strong run in housing like the stock market and some correction was invefble. >> reporter: potential home buyers deciding not to pull the trigger and sign a contract now that the average 30-year fix the rate mortgage is 4.58% according to freddie mac, up a full percent since may. >> we've seen rate increases and seeing more. we want to wait and see if maybe they go down before we sign the contract. >> reporter: the higher mortgage rates had the exact opposite effect on existing home sales. they spiked upward to a four-year high. that's because home buyers locked in lower mortgage rate

pulte, ryland, kb home, they've been the real sufferers today. today, again, and last week, reits, telecom, stocks all to the downside. they were down today. and for the month, well, there you see it. interest rates sensitive reits, home building stocks, down essentially 8%. the s&p 500 down about 2% so far this month. utilities and telecom down to the downside. what else is down? bond funds. that's pretty obvious. so whether you're dealing with the tlt, the treasury etf, lqd is corporate bonds, and even mortgage-related, as jenny mae, that's, again, the etf, you can buy these -- these different instruments here all to the downside today. if you're selling bonds and you're selling stocks to the united states, then what are you buying? you could go to cash, but up until last week, a lot of people were buying europe. this is very active etf, the vgk here, but it's been very topee for the last four days or so. again, this turned down today, the european stocks are not trading now. this the vgk trading here, but a perception that europe could be weak

ryland thehave the -- schools are doing this where you have schools on the periphery and you can leverage small schools. andt makes a lot of sense certainly people on the right have argued that we should have the small districts to foster that, but for that to work, we need to provide these other supports. new jersey has been innovative in some ways of treating this shared superintendent program. districts can lessen administrative costs. even looking at charter management organizations, to think more broadly about how you might create virtual support and capacity building for disparate school districts that allows and shape.w the choice alone can provide some levers, but also thinking more broadly about ways that we can be more thoughtful about the management that will make this work. >> i totally agree. i do not think choice will do it alone. to me, thenia, -- charter management organization example raises this. a good follow-up to that would be, what thing to do a larger entity do well? in california, what the sacramento do well? it will be a pretty short list. i do not think it is a c