Existing Home Sales Fall

- Existing Home Sales for June fell to 5.75M versus estimates of 5.86M and 5.98M in May.

BOTTOM LINE: Sales of previously owned homes in the US fell in May, Bloomberg said. At the current sales pace, inventories rose to 8.9 months’ worth versus 8.4 months’ worth in April. Purchases fell 3.4% in the South and .8% in the West. They rose 5.8% in the Northeast and .7% in the Midwest. I continue to believe housing sales are in the process of stabilizing at relatively high levels and that new home construction will remain muted as homebuilders work down inventories.