Rising incomes, low borrowing costs and job creation support a stronger U.S. housing market

US existing home sales rose 1.2% in Feb to 4.88 mln units annualized. The increase failed to erase Jan's 4.9% drop and it failed to break through the 5 million mark for the 2nd straight month.

Looking past the monthly wiggles, rising incomes (albeit at a subdued pace), still-low borrowing costs and job creation remain the pillars supporting a stronger U.S. housing market.

BMO Capital Markets notes ....

• There was some weather impact, particularly in the Northeast (-6.5%). Mother Nature will probably make her presence known more in March. The good news is, it was flat-to-higher everywhere else. Still-low inventories continue to play a role in the flattish trend of home sales. 
  
  
• Although total inventories rose 1.6%, they're still near one-year lows. The number of existing single-homes available to be bought fell 1.2% (also near a year low). The months' supply was kept steady'ish at 4.6, which is a tight market.  
  
  
• That is great news for homeowners, not great news for those wanted to be homeowners. We did see the share of first-time homebuyers tick higher to 29%, but that remains well below the 40% share that prevails during normal times. But more experienced homebuyers saw their share rise to 57%, the highest since Sept.