- Existing Home Sales for June fell to 6.62M versus estimates of 6.6M and 6.71M in May.
BOTTOM LINE: Confidence among US consumers unexpectedly rose for a second straight month in July, driven by gains in jobs and incomes, Bloomberg reported. Average Hourly Wages rose 3.9% in June, the most in five years and the unemployment rate is a low 4.6%. The expectations component of the index rose to 88.8 from 87.5 prior. The present situation component of the index increased to 133 from 132.2 in June. Those that plan on purchasing a home rose to 3.4% from 3.2% the prior month. Those that saw jobs as plentiful rose to 28.6% from 28.0% the prior month. I continue to expect consumer confidence to make new cycle highs over the intermediate-term as stocks rise, housing stabilizes, inflation decelerates, energy prices fall, long-term rates remain low, the job market remains healthy and irrational pessimism lifts.
Sales of previously owned homes in the US fell in June to the lowest in five months, Bloomberg said. Inventories of unsold homes are at 1997 levels. The median price of an existing home rose .9% in June to $231,000. Purchases fell 3.5% in the Northeast and 2.3% in the South. Sales were unchanged in the Mid-west and West. I continue to believe housing will stabilize to more healthy sustainable levels over the intermediate-term.
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