NEW YORK (CNN/Money) - Sales of new homes fell from a record pace in June, the government reported Tuesday, but still came in above economists' estimates as buyers continue to shrug off higher mortgage rates.

Single-family new home sales fell 0.8 percent to an annual rate of 1.33 million, the Commerce Department reported. That's down from a lower revised annual rate of 1.34 million in June, which was a record, and above estimates of 1.26 million, according to Briefing.com.

The housing sector remains strong even as interest rates begin to climb off historic lows. The National Association of Realtors reported Monday that existing home sales hit a record annualized pace of 6.95 million in June.

But existing sales may also fall off the record pace, as they are recorded when the sales are closed. New home sales are recorded when the sales contract is signed, which may be a few months before a existing home sale is closed.

The mean sales price for new homes was $262,400 in June, while the median, or midpoint, was $209,900, according to the Commerce Department.

Across many parts of the country, soaring home values have sparked concerns of a housing bubble. HSBC economist Ian Morris warned in a recent report that warned that housing prices could decline by 5 percent to 10 percent nationally over the next five years.

"Expectations of future house price appreciation are spectacularly, and unrealistically, high," he wrote.

However, other analysts feel any bubble is a regional phenomenon and buying will remain strong as household income improves with an expanding economic recovery.