The Market Bull – July 24, 2019
The major averages closed mixed on poor economic data. Yet another attempt to resolve the trade war with China is in the works.
The Mortgage Bankers Association reports that its activity monitor fell 1.9% last week. Refi’s slipped 2.1% while purchase apps dropped 1.6%. The 30-year contract rate for a jumbo loan fell to 4.04%. Despite lower mortgage rates, real estate sales seem to be struggling of late, as this series declines for a 4th consecutive week.
New Home Sales more or less matched expectations in June at 646,000 units annualized. Downward revisions for the three previous months totaled 55,000, more than offsetting the June increase of 42,000 in sales. Month’s supply dipped to 6.3, a little on the high side. The median price advanced 2.7% to $315,300. The Western region was particularly volatile for a second month posting a large advance. Despite lower interest rates home sales continue to struggle. Data as per the National Association of Realtors or NAR.
Existing Home Sales Data was also revised lower and some of the math doesn’t seem to make sense.
Total sales were revised to show a figure 2.2% lower than a year ago in the first 6-months of 2019.
Broken down by price range and the figures don’t seem to add up.
The Philadelphia Fed State Coincident Indexes gained in 46 states in June, slipped in one and were unchanged in 3, very solid numbers. The western half of the country shows particular strength with this series.
Standard and Poors 500 Index closed at: 3,019.56 up 14.09
NASDAQ finished the day: 8,321.50 up 70.10
Gold ended trading at: $1,426.20 down $4.50