Sales of new single-family homes fell to an eight-month low in June. The ongoing hurdles of rising lumber costs and shortages of labor and land are partly to blame. June New Home Sales fell 5.3% from May to an annual rate of 631,000 units, below the 670,000 expected. However, from June 2017 to June 2018, sales rose 2.4%. New Home Sales surged in the Northeast, but were weighed down by declines in the West, Midwest and South.
Black Knight Financial Services reports that foreclosure starts fell in June to their lowest level in 17 years. Foreclosure starts declined 3% from May to June while active foreclosures continued to drop, falling below 300,000 for the first time in nearly 12 years. Mortgage delinquencies pushed higher in June, but remain 1.6% below 2017 levels.
The ongoing trade issues continue today after Reuters reported that the European Commission is drawing up a list of $20 billion worth of U.S. goods to hit with duties if Washington imposes tariffs on imported cars. However, President Trump will be meeting with Cecilia Malmstrom today, the head of EU trade policy. There is hope this matter could be worked out and if so, the good news could help Stocks and hurt Bonds. Currently, U.S. Stocks are mixed with the Dow Jones Industrial Average lower, being weighed down by disappointing earnings results from GM and Boeing.
New Home Sales decline. Foreclosure starts drop in June. Ongoing trade issues dents Stocks.
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