(Reuters) - New single-family home sales in the United States fell in August to a 6-month low but the supply of homes available on the market dropped to a record low.

The Commerce Department said on Monday sales slipped 2.3 percent to a seasonally adjusted 295,000-unit annual rate, the lowest since February and in line with analysts' forecasts. The government raised its estimate for July's sales pace to 302,000 units from the previously reported 298,000 units.

Economists polled by Reuters had forecast a 295,000-unit rate in August. In the year through August, new home sales rose 6.1 percent. (Reporting by Jason Lange; Editing by James Dalgleish)

Given the sell-off that took place on Friday, the anticipation of this weekend's G20 talks, and the fact that prices have been at historical extremes, it's somewhat of a surprise to see both 10yr yields and MBS trading fairly close to Friday's closing levels.

- Fannie 3.5's are up 3 ticks at 102-28
- 10yr yields are about a bp higher at 1.84
- S&P Futures are higher, but look to have some troubles getting through 1144's. Two bounces there have helped 10yr yields bounce as well.

With only New Home Sales on tap at 10am, today is officially the light day this week in terms of scheduled economic reports. The threat of a fresh round of auction supply looms large, as well as an increasing amount of economic data and events through the rest of the week.

Rate sheets should be similar to improved vs Friday's latest, and should not be out much later than usual if the current pace of market movements continues.