Economy
Existing home sales declined in June by 2.4% as the Spring season ends on a lackluster note. A survey done by the Wall Street Journal ahead of Thursday's report showed expectations for an increase of 0.7%. Mortgage rates have risen along with inflation since the war with Iran began, damaging housing affordability and curbing appetite for prospective buyers. Rates briefly dipped below 6% for a 30 year mortgage back in February but are back near 6.5% today. However, Redfin recently reported that it is seeing an increase in pending home sales, which it says are at the highest level since early May.
Markets
Technology stocks led the broader markets higher as the S&P 500 posted a gain for the week of 1.23%. Despite the end of the ceasefire with Iran, oil prices remain relatively low but still elevated above their pre-war levels. The markets didn't seem phased by the recent rhetoric between the US and Iran. Instead, the focus will be on earnings reports coming out this upcoming week. FactSetreports that we could see the highest earnings growth rate since Q4 2021. We'll hear first from the financial sector and get the major banks' take on the state of the economy and health of the US consumer.
What We're Reading
- A Broken Elbow Forces Two Retirees to Ponder Their Future Mobility - WSJ
- The Housing Market's New Suboptimal Equilibrium - Bonddad
Have a great weekend.
Dogwood Wealth Management