Home Sales Dip 2.2% despite Tax Credits

Sales of previously occupied U.S. homes dipped 2.2 percent in May, suggesting that a boost from government home-buying incentives is winding down earlier than expected.

The National Association of Realtors says last month's sales fell to a seasonally adjusted annual rate of 5.66 million. April's results were revised upward to 5.79 million. Economists polled by Thomson Reuters had expected sales to rise to a rate of 6.12 million.

The federal government had boosted home sales by offering buyers tax credits of up to $8,000. The deadline to get a signed sales contract and still qualify was April 30. Buyers must close their purchases by end of this month.