Despite political scandal engulfing Washington as the noose tightens around Trump. Tariffs on European auto imports get put on hold for now. Sending the major averages into the final hour mixed on disappointing economic data.
That said the Standard and Poors 500 Index matched the longest bull run in the history of the Index at the open this morning at 3,452 days following yesterday’s new record high.
Despite the market hoopla cracks continue to grow with small bank credit card delinquencies climbing steadily as they have done since mid-2016 reaching a new high of 6.2%. Charge-offs also advanced hitting 7.8% though they remain a little below the previous crisis peak, at least for now. Delinquency and charge-off rates for the biggest banks remain low but have risen some of late. Per data from the Federal Reserve.
The Mortgage Bankers Association reports that its activity index advanced 4.2% last week. Refi’s jumped 6%, purchase apps gained 2.9%. The 30-year contract rate for a conforming loan slipped 5 basis points to 4.68%.
Existing home sales missed expectations in July falling for a 4th consecutive month, down .7% to 5.34 million units annualized. Inventory was unchanged at 4.3 months’ supply. The median price slipped 1.5% for the month to $269,600, a figure 4.5% higher than a year ago. All regions fell except the west that saw a small gain.
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