U.S. existing home sales fell 3.3% in April to 5.04 mln units annualized, the first decline since January and the lowest in two months. It bears repeating that the move is a little surprising, given that there have been three consecutive monthly gains in signed contracts, and, new mortgage applications jumped in both March and April. In any event, tumble they did, although it follows a slight upward revision to March.“Not to sound like a broken record but with steady job growth, low mortgage rates, and easier credit conditions, there is fundamental support for housing. But with prices heading up again, and inventories still tight, potential buyers may be a little more choosy in the buying process.” noted BMO Capital Markets
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