New Homes Sales in June rose .8%, Federal Open Market Committee meeting ends today, S&P 500 closed record high Tuesday

July 26, 2017

The Commerce Department reported on Tuesday that New Home Sales in June rose a modest 0.8% from May to an annual rate of 610,000 units, which was in line with estimates. From June 2016 to June 2017, sales rose 9.1%. The median sales price of new houses sold in June 2017 was $310,800. At June’s sales pace, there is a 5.4 months’ supply of homes for sales on the market, up 1.1% from May, though still below the 6 percent that is seen as normal.

The Federal Open Market Committee meeting will end this afternoon with the 2:00 p.m. ET release of its monetary policy statement. There is a near zero percent chance of a hike to the Fed Funds Rate. The statement could give some clues as to the future path of interest rates and when the unwinding of the Fed’s massive balance sheet will begin.

The closely watched S&P 500 closed at yet another record high in Tuesday’s trading session fueled by higher oil prices, positive economic data and solid quarterly earnings reports. The S&P 500 Stock Index closed at 2,477.13 yesterday, up nearly 11% for the year. In contrast, at the height of the Great Recession, the S&P closed at a low of 666 in early March 2009.