New Home Sales Jump in Midwest, Fall in Northeast

New home sales in April rose 6.4%, much higher than many analysts estimates. However, inventories dropped from March to April, which could cause problems in future months.
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New home sales in April rose 6.4%, much higher than many analysts estimates. Peter Cardillo, Chief economist at Rockwell Global Capital believes as states thaw out, home buyers will return to the market. He also thinks that lenders have eased requirements, making it easier for home buyers to get a loan. The biggest gains were in the Midwest, while the Northeast actually fell. Inventories dropped from March to April, which could cause problems in future months. Cardillo sees a return to a normal housing market, not a bubble fueled by speculation buyers. Debra Borchardt reports from Wall Street.