Stocks are at all-time highs, Pending home sales in June rose, Homeownership rates remained near 50-year lows
July 31, 2017
Stocks are at all-time highs again as investors embrace strong quarterly corporate earnings. Of the 289 S&P 500 companies that have reported up until Friday, 73% have exceeded expectations. This is slightly above the 71% average over the past four quarters, according to Thomson Reuters. The Dow Jones Industrial Average hit a record high of 21,916.67 in today’s trading session.
The National Association of REALTORS® reported on Monday that Pending Home Sales in June rose 1.5% from May, after three straight months of declines. June was the first month that Pending Home Sales rose annually since March, rising by 0.5%. Lawrence Yun, NAR chief economist, says the rebound in June in most of the country is a welcoming sign. Mr. Yun said, “Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria.”
The Census Bureau reported last week that homeownership rates remained near 50-year lows in the second quarter, though they did edge higher from a year ago. The homeownership rate increased by 0.1% to 63.7% in the second quarter from the first and is up 0.8% from the second quarter in 2016. The shortage of homes for sale on the market could continue to keep homeownership rates low.