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New Home Sales Jump 9.4% in July
Data suggesting that the economy is experiencing a broad-based rebound continues to pile in this week, most recently in the housing market. New Home Sales advanced by 9.6% in July, hammering expectations for a 5% increase and following up on a 9.1% advance in the prior month.rnrnJuly marks the fourth consecutive monthly increase, pushing the annual pace of sales to 433,000 -- the first time same sales have passed the 400k mark since October. The annual rate is still 13.4% below the pace in July 2008, yet that compares nicely with the 19.1% annual decline reported in June.rnrn“This report was
Durable Goods Bolstered by Aircraft Orders
New orders for durable goods nearly doubled expectations in July, as the monthly advance was the largest in two years. New orders surged 4.9% in the month, easily erasing the 1.3% decline in June (revised from -2.5%), and giving an upside surprise to investors who were only looking for a 3% gain. rnrnHowever, much of the increase was due to Boeing doubling its orders for aircraft, allowing transportation equipment to soar 18.4%, its third increase in four months. Of course, that’s great news, but such a large advance means the headline isn’t reflective of broad-based increases.rn
Gains Expected from Durable Goods, New Home Sales
Investor sentiment is cautious ahead of the Durable Goods release at 8:30 and the New Home Sales report at 10:00. Equity futures are looking slightly downward, with the S&P 500 down 3 points to 1,023, more than erasing yesterday’s modest 2.4-point gain.rnrnBoth data reports are expected to bring good news. Before the two releases, the Mortgage Bankers Association said its Market Composite Index ― which tracks the volume of mortgage applications ― advanced 7.6% last week, a nice touch to the 5.6% gain in the week before. The gain occurred despite a minor rise in mortgage rates
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