In the Commerce report, the supply of new homes on the market fell to 3.9 months' worth from 4.1 months in March, That's the leanest supply since September 2002 when the figure was also 3.9 months.
Annual sales in the Midwest posted the largest gain, 13.4 percent, to a 186,000 rate, while sales in the West saw a 4.3 percent increase, to 267,000. The South, the largest market for new homes, eked out a 0.6 percent gain to a 487,000 annual sales pace. The Northeast, however, saw sales dip 17.8 percent, to an 88,000 annual rate.