US Housing Market Lagged in June

US Housing Market Lagged in June

US Housing Market Lagged in June

$DIA, $SPY, $QQQ, $RUTX, $VXX

US home sales fell in June, posting their 3rd straight monthly decliner as a shortage of properties on the market drove house prices to a record high.

The report from the National Association of Realtors added to last week’s soft home-building data in suggesting that the housing market lagged an apparent acceleration in economic growth in Q-2.

While supply constraints have accounted for the weak sales streak, there are concerns that the higher house prices and rising mortgage rates may cause demand to slow.

Existing home sales slipped 0.6% to a seasonally adjusted annual rate of 5.38-M units last month, the NAR said. May’s sales pace was revised down to 5.41-M units from the previously reported 5.43-M units.

Economists polled had forecast existing home sales gaining 0.5% in June. Sales rose in the Northeast and Midwest. They fell in the West, which has seen a sharp rise in prices, and the South, where most of the homes are sold.

Existing home sales, which make up about 90% of U.S. home sales, dropped 2.2% from a year ago in June. They have declined on a Y-Y basis for 4 months running and decreased 2.2% in 1-H of Y 2018.

Sales are being stymied by an acute shortages of homes on the market. Rising building materials costs as well as shortages of land and labor have left builders unable to bridge the inventory gap, pushing up house prices.

The median house price increased 5.2% from a year ago to an all-time high of $276,900 in June. That was the 76th consecutive month of Y-Y price gains.

The 30-year mortgage rate is around 4.52%, according to data from mortgage finance agency Freddie Mac. In contrast, annual wage growth has been stuck below 3%.

The PHLX housing index .HGX declined, underperforming a broadly flat stock market. Prices for US Treasuries were trading lower, while USD rose Vs a basket of currencies.

Monday, the major US stock market indexes finished at: DJIA -13.83 at 25044.29, NAS Comp+21.67 at 7841.88, S&P 500 +5.15 at 2806.72

Volume: Trade on the NYSE came in at 699-M/shares exchanged

  • NAS Comp +13.6% YTD
  • Russell 2000 +10.6% YTD
  • S&P 500 +5.0% YTD
  • DJIA +1.3% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
23 July 2018 QQQ 179.56 Bullish (0.39) 179.50 183.42
23 July 2018 DIA 250.44 Neutral (0.22) 247.95 250.81
23 July 2018 SPY 279.68 Bullish (0.29) 278.16 279.88

Read more at http://www.stockta.com/#4JT1TDx5D8fmish7.99

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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