US existing home sales up 0.2pc in April

(Sharecast News) - US existing home sales ticked slightly higher in April, according to the National Association of Realtors, rising 0.2% from March's seven‑month low to an annualised 4.02m units.

April's reading came in just below expectations for 4.05m, with activity held back by higher mortgage rates after a surge in energy prices pushed long‑term Treasury yields higher.

Regionally, sales fell sharply in the West, down 2.6% to 750,000 units, offsetting a 2.2% increase in the Midwest to 950,000.

Inventory rose 5.8% to 1.47m homes, equivalent to 4.4 months of supply.

"Despite mixed macroeconomic signals-including a record-high stock market and historically low consumer confidence-home sales were modestly boosted by the continued improvement in housing affordability," said NAR chief economist Dr Lawrence Yun. "Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains."

Reporting by Iain Gilbert at Sharecast.com