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Crazy Thoughts and The Market Update July 24th

Crazy Thoughts and The Market Update July 24th
July 24, 2017 abryant

Singing in the shower is all fun and games until you get shampoo in your mouth.  Then it becomes a soap opera.

I like to live life dangerously by occasionally sticking my foot out over the edge of the bed at night.

I just found out it takes 5 sheep to make one wool sweater.  I didn’t even know they knew how to knit.

My favorite exercise is a cross between a lunge and a crunch…. I call it lunch.

Been there done that.  Then, been there several more times, because apparently I never learn.

 

Now the Market Update . . .

 

Jobless claims hit a near 5-month low this week, supporting economic growth.  Sustained labor market strength could contribute to higher rates.

The failure to pass a new health care reform bill has traders questioning possible tax cuts and infrastructure spending, and is supportive of lower mortgage rates.

Recent economic data has cast doubt on whether the Fed will raise policy rates again this year.  Lack of inflation is supportive of lower mortgage rates.

 

Home builder sentiment was down slightly in July due to increased cost of materials, but the overall outlook is still considered positive.

June housing starts were much higher than expected, rebounding from 3 months of decline.  May’s numbers were also revised higher by 0.03 million units.

Building permits shot up 7.4% in June, the highest level since March, signaling more new home building to come.  Building completions surged 5.2% as well.

 

More on Housing Starts:

Expectations were for the pace of annualized starts to come in at 1.200 M.

The actual report delivered 1.215 M, plus the prior month was revised higher by 300,000.

Translating all this to percentages, housing starts increased 8.3% and permits jumped 7.4%.

Starts for single-family homes rose 6.3 percent while multi-family jumped 13.3%.

Surprisingly is that the Northeast led the country followed by the Midwest.

The West was up slightly and the South was down significantly.

The housing market will get the rest of the data it needs to better indicate the future of housing next week.

With three major housing reports, investors will be paying close attention.

 

Never criticize someone until you have walked a mile in their shoes.  That way, when you criticize them, you’ll be a mile away and you’ll have their shoes.

 

This Week’s Potential Market Moving Reports:

Mon., July 24th:      Existing Home Sales

Tues., July 25th:      FHFA House Price Index, S&P Corelogic Case-Shiller HPI

Wed., July 26th:      MBA Mortgage Applications, New Home Sales, FOMC Announcement

Thurs., July 27th:    First-time Jobless Claims, Durable Goods Orders

Fri., July 28th:         GDP