Mortgage Rates Dropped But So Did Home Sales

High prices and a tight supply still dog existing U.S. home sales despite a decline in mortgage interest rates.

Sales slipped 0.4% in April compared with March, marking the 14th straight month of decline in the seasonally adjusted annual rate, which was 5.19 million units, according the National Association of Realtors. However, CNBC reports that housing market analysts such as the association’s economist Lawrence Yun and Freddie Mac’s chief economist Sam Khater still point to fundamentals, such as improved job creation and income growth, for their upbeat outlook during the summer.

“We still expect stronger home sales and housing starts in the coming months due to favorable market conditions accelerating wage growth,” says Khater.

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