Daily News 8/24/15

August 24, 2015

Monday – August 24

After last week’s selloff in the Stock markets the Dow Jones Industrial Average shed 1000 points. The closely watched Stock Index fell 1,100 points to begin this week after global Stock markets plunged overnight. Concerns of a slowing global economy, falling commodity prices and the specter of rising rates here in the States has pushed investors to cash in their chips and take some profits. Stocks are now more than 10% off their highs seen back in May, which officially has turned into a correction.

Home prices continued their steady rise in June as the sector seems to be hitting on most of its cylinders, though not fully recovered. The Black Knight Financial Home Price Index (HPI) rose 0.9% from May to June, up 4.9% since the beginning of the year and up 26% since the start of 2012, which was near the bottom. At $252,000, the national level HPI is now just 5.8% off its June 2006 peak of $268,000. The index covers home prices as of their transaction date in 18,500 U.S zip codes.

Fannie Mae released its August 2015 Economic and Housing Outlook saying that economic growth in the second half of the year is less optimistic than was previously stated. Fannie went on to say that “headwinds from a strong dollar and renewed declines in crude oil prices, are expected to continue to pose challenges in the current quarter, although consumer and government spending will likely provide support. Housing also is expected to contribute to 2015’s growth, with year-to-date main housing indicators staying well above year-ago levels.”