A herd of goats grazes next to a development of new homes in San Jose, Calif. Reports released Thursday show that sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation's housing slump is over.

Washington ? The beleaguered housing industry is sending mixed signals, with sales of new homes surging in April by the biggest amount in 14 years while prices endured a record plunge.

Analysts said the price drop could provide evidence of builders’ desperation. They are looking to reduce a glut of unsold homes in the face of the worst slump in sales in more than a decade.

The Commerce Department reported Thursday that sales of new single-family homes jumped by 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units.

That was the biggest one-month sales gain since a 16.4 percent surge in April 1993. Even with the increase, however, sales are 10.6 percent below the level of a year ago.

The median price of a new home – the midway point between the costliest and cheapest – fell to $229,100, a record 11.1 percent below the March level. The price was 10.9 percent below the level of a year ago, the biggest year-over-year price decline since 1970.

On Wall Street, the stock market retreated as hopes faded that the Federal Reserve will have to resort to an interest rate cut to stimulate the economy. The Dow Jones industrial average fell 84.52 points to close at 13,441.13.

Analysts said the drop in home prices probably reflected efforts by builders to cut prices more aggressively to sell homes.

They cautioned against reading too much into the 16.2 percent jump in sales, the first increase after three consecutive months of sales declines. Analysts noted that this series is subject to wide revisions and that much of the strength came from a big increase in the South, which they said could be partially weather-related.

David Seiders, chief economist for the National Association of Home Builders, said he was looking for sales of new homes to fall by 18 percent for the whole year, matching last year’s decline.

Sales of both new and existing homes set records for five consecutive years until 2006, when real estate suffered what many believe was a bursting of a speculative bubble.

The association’s confidence survey for home builders returned to the low point for this downturn, set last September.

The slump in housing is the worst since the 1990-91 recession. Analyst said it probably would continue for several more months and that any rebound would be subdued, in part because mortgage rates have started to rise.

The mortgage company Freddie Mac reported Thursday its weekly survey found that the nationwide average for 30-year mortgages jumped to 6.37 percent this week, the highest level in seven months. The jump came as financial markets grew less optimistic about the possibility of rate cuts by the Federal Reserve.