The data on new home sales for the month of May is going to be a disappointment even for the green shoots crowd, at least on the surface. Sales of new homes in May fell by 0.6% to 342,000 on an annualized rate. Dow Jones had estimates calling for a 2% gain to 360,000. The numbers in April were revised to 344,000 from a prior target of 352,000 originally reported.

April sales are a sign to some economists that the worst of the housing downturn may be over.

Census Bureau says sales of newly built homes rose nearly 5% in February. Analysts wary of long-term recovery.