Pace of Growth in Total Home Sales to 3.3%, Home builder confidence slipped in July, Corporate earnings season is underway
July 18, 2017
Fannie Mae continues to project that the pace of growth in total home sales will slow to 3.3% this year. Fannie believes that rapid home price gains amid scarce supply will remain a hurdle for potential home buyers, despite improvements in credit access. In addition, Fannie forecasts economic expansion will slow in the second half of 2017.
Home builder confidence slipped in July on concerns of rising costs for materials, particularly higher lumber prices. The NAHB Housing Market Index fell two points to 64, the lowest level in eight months and below the 66 expected. All three of the surveys components declined, which include current sales, sales expectations and buyer traffic. However, the index is still well into positive territory where any number over 50 indicates more builders view conditions as good rather than poor.
Corporate earnings season is well underway with the spotlight today on Goldman Sachs and Bank of America. Investment banking giant Goldman Sachs reported that both revenues and earnings beat expectations, but trading revenues in fixed income products are down 40% from the same period last year. Bank of America reported that it too beat on revenues and earnings while trading revenues saw a 14% slide in its fixed income division.