Sales of new homes in the United States rose a smaller-than-expected 0.7 percent in August, the government reported Friday, providing more evidence that any recovery in the housing market will be gradual. The Commerce Department said sales rose slightly last month to an annual rate of 429,000 from a rate of 426,000 in July. Economists had expected a rise to a rate of 440,000. While it was the fifth consecutive increase and the strongest new-homes sales rate in 11 months, sales still were 4.3 percent lower than a year ago. While sales have risen 30 percent from the bottom seen in January, they are about 70 percent below the peak of four years ago. Friday's report was the second disappointing sign this week for the U.S. housing market, which is struggling to emerge from the most severe bust in generations. On Thursday, the National Association of Realtors reported that sales of existing homes (which comprise most of the market) fell 2.7 percent in August.