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This morning's housing data was existing home sales, which came in at 4.92 million for the month of March. That's a 0.6% decline month-over-month (March vs February), which came in below consensus expectations. In general, the housing market is encountering seasonal headwinds which has lowered investor confidence in housing. Hedgeye Financials Sector Head Josh Steiner explains the current paradox plaguing the housing market:

"On the one hand, low inventory precipitates rising prices, while on the other hand low inventory marginally constrains volume growth. All things equal, low inventory helps the housing market far more than it hurts."

HOUSING: The Inflection Point - housingc1

Our expectation is that over time, both volume and inventory will rise. As mortgage demand increases and more homes come out of being "underwater," the market will continue to placate investors. We remain bullish on housing and think that any near-term hurdles will be overcome.

HOUSING: The Inflection Point - housingc2

HOUSING: The Inflection Point - housingc3

HOUSING: The Inflection Point - housingc4

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