The major averages enter the final hour with small gains despite disappointing but not overly significant economic data. Trade war rhetoric continues with Trump threatening to up the ante with China significantly and India preparing its own tariffs.
Mortgage activity gained 5.1% last week. Refi’s advanced 6.1% while purchase apps increased 4.3%. The 30-year contract rate for a jumbo loan increased to 4.79%, as per the Mortgage Bankers Association.
Existing home sales missed expectations in May, falling .4% to 5.43 million units annualized. All regions declined, save the Northeast. Month’s supply increased to 4.1, still fairly low, the median price increased $6,900 to $264,800, On a year ago basis the median price is up 4.9%, a figure that is steadily declining.
The International Monetary Fund or IMF recently created global debt database that covers public and private debt at the country level dating back to 1946 is quite the statistical achievement. Noted in the data, the previous highwater mark for global debt was 2009 when it reached 213% of world economic output. This figure has now reached 225% of total global economic output. While the composition of debt has changed somewhat with public debt replacing private debt in many countries due to the use of various debt funded stimulus programs in the post crisis period since 2009. The Great Financial Crisis of 2007-2009 proved beyond a shadow of a doubt that borrowing your way to prosperity was a deeply flawed strategy, yet here we are again, debt funded faux prosperity.
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