People who can fall asleep quickly freak me out . . . I mean, don’t they have thoughts?
If you are lonely, dim all the lights and put on a horror movie. You won’t feel like you are lonely any more.
I don’t know if our ceiling is the best ceiling . . . but it’s definitely up there.
I eat cake because it’s someone’s birthday somewhere today.
The only thing you have to fear is fear itself . . . and spiders.
Now the Market Update . . .
The Fed left policy rates unchanged at this month’s FOMC meeting. They did say though that they will begin reducing their balance sheet ‘relatively soon.’
Traders’ reactions to the Fed’s statement were also positive for mortgage rates. Speculation is the Fed will take gradual action when tightening economic policy.
Inflation continues to come in below the Fed’s desired level of 2% and will be monitored. Low inflation is supportive of lower mortgage rates.
Existing home sales fell more than expected in June, and tight inventory has been blamed. Lack of homes has led to bidding wars and higher home prices.
However, new home sales increased for the second straight month in June. Also, the inventory of new homes on the market increased 1.1%, the highest level in 8 years.
According to Case-Shiller, major metro area home prices were up 5.7% year-over-year in May. Inventory of existing homes for sale is around 4 months.
More on Existing Home Sales:
The recent decline in pending home sales, translated into a decline in existing home sales.
The latest data showed a drop of 1.8 percent for the month of June.
Compared to the same time last year, existing sales are up 0.7 percent.
On the flip-side, home prices are up a sharp 6.5 percent from a year ago.
The latest median home price is $263,800.
The supply of homes continues to remain a big challenge in many markets throughout the country.
Supply dropped 0.5 percent in June which places the national average at 4.3 months.
The most notable concern relating to home availability is that supply is 7.1 percent lower than the same time last year.
The question people are starting to ask is “is home price appreciation slowing?”
Although the existing home sales report showed a strong increase in home prices, the latest Case-Shiller data points to more modest price growth.
Overall, home prices are higher by 5.7 percent from last year in the Case-Shiller data.
When it comes to work, change is inevitable, except from the vending machine.
This week’s potential market moving reports are:
Monday, July 31st: Pending Homes Sales
Tuesday, August 1st: PMI Manufacturing Index, Construction Spending, ISM Mfg Index
Wednesday, August 2nd: MBA Mortgage Applications, ADP Employment Report
Thursday, August 3rd: First Time Jobless Claims, Factory Orders
Friday, August 4th: National Employment Report
