Keeping Current Graphs For June 2017

Keeping Current

Existing home sales slipped 1.8% in June to an annualized rate of 5.52 million units. Year-to-date, sales of existing homes are running 3.0% above their pace through the first six months of 2016.1 The inventory of existing homes on the market stood at 1.96 million units in June, down 7.1% from a year earlier. The months’ supply of homes on the market was 4.3 months in June, meaning it would take just over four months to sell all the homes on the market at June’s sales rate. The average months’ supply figure for 2013-16 was 4.8 months.1 The median price of existing homes sold in June was $263,800, up 6.5% from the median price in June 2016.1 New homes sold reached an annual rate of 610,000 units in June, up 0.8% from May. Through the first half of 2017, sales are running 11.0% above sales through the first half of 2016.2 The median price of new homes sold in June was $310,800, down 3.4% from the median price in June 2016.2 Half of the new homes sold in June were on the market for 3.0 months. A year ago, the median time a new home spent on the market was 4.0 months.2 The homeownership rate rose to 63.9% in the second quarter of 2017, its highest level since late 2014. A year ago, the homeownership rate was 63.1%. The homeownership rate for those under 35 years old was 35.3% in 2017’s second quarter, up from 34.1% a year ago.3 Housing starts rose in June for the first time in four months. The 8.3% rebound to an annual rate of 1.215 million units puts starts 2.1% ahead of their pace in June 2016. Single-family housing starts through the first half of 2017 were up 7.9% over starts in the first half of last year.4 Retail sales slipped 0.2% in June, its second consecutive monthly decline. Retail sales were up 2.8% relative to June 2016, below the average annual rate of 4.4% since the recovery began in June 2009.5 The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 3.92% during the week ending July 27, down four basis points from the week before. The rate averaged 3.97% in July, up from 3.90% in June. All rates quoted have fees and points averaging 0.5% to 0.6% of the loan amount.6 Here’s additional information from the Wells Fargo Economics Group: New Home Sales Rose Modestly in June (July 14) Existing Home Sales Decline Again, Amid Low Inventories (July 24) Housing Starts Rebound Solidly in June (July 19) Gasoline Sales Exerting Downward Pressure on Retail Sales (July 14) Slow and Steady Improvement in Industrial Production (July 14) CPI Inflation Remains Tame in June (July 14) Weekly Economic & Financial Commentary (July 14) Weekly Economic & Financial Commentary (July 21)

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