Expect the unexpected. After a string of positive housing reports, sales of new homes reached their lowest levels of the year in June.
June New Home Sales unexpectedly declined by 6.8 percent to an annual rate of 482,000. May’s sales were also revised lower to 517,000 from the original estimate of 546,000. While sales of new homes make up a small portion of total home sales, the decline is reflective of limited supply and the reality that construction is expanding at a slower pace than demand can accommodate.
On the flip side, sales of existing homes soared in June, reaching their highest pace in eight years due to rising demand and limited supply. Sales rose to 5.49 million, above expectations and up 3.2 percent from May. Sales are up 9.6 percent when compared to June of last year and have increased on annual basis for nine consecutive months.
Also of note, weekly Initial Jobless Claims fell to a 42-year low of 255,000, and have been running below the 300,000 mark since late February, the longest such streak in 15 years. However, the strength of the labor market could be exaggerated a bit due to volatility during the summer months.
Regardless, one thing is clear: The Fed will be closely analyzing all the housing and labor sector reports at its upcoming meeting, as it continues to evaluate when to raise its benchmark Fed Funds Rate.
Mortgage Bonds have improved since reaching 2015 lows in mid-July. Home loan rates remain attractive and near historic lows.
Jim Krantz
Vice President
NMLS # 761955
Jim.Krantz@TraditionLLC.com
Direct 952.252.4488 / Cell 612.716.9999 / Fax 952.252.4489
Tradition Mortgage LLC
NMLS # 286998
4350 Baker Rd Suite 190 / Minnetonka, MN 55343 / www.TraditionWest.com
Ward, Dale E. Retired Sgt. Dale Elliot Ward, of Minneapolis, passed away in his sleep July 10, 2015 at the age of 75. Dale was born in 1940 to Milo and Irene Ward who preceded him in death. In the early 60’s, Dale served in the US Army as a Sergeant stationed in Germany, and that experience left a deep impression on him. It fueled his life long interest in history. Dale was an avid reader and history buff, especially as relates to the military and major battles through the ages. He never seemed to forget a historical fact regardless of how obscure. In 1964, Dale joined the Minneapolis Police Department and served in a variety of roles. He loved his 39 yr police career and particularly enjoyed serving as Rangemaster. While a man of few words, he is remembered for his dry wit and sharp observations. His passion for precision and artistic undercurrent was aptly expressed in his very beautiful penmanship. Dale is survived by his wife Mary Jo; children Tisa Ford (Tom), Steve (Andrea) and Jimmy; grandchildren Stephen, Josh and Ava; great-grandchildren Kyan and Lauren; siblings Pat Rodriguez (Kenny), David (Pat) and Mark. He is also survived and loved by many nieces & nephews. A memorial service will be held 4:30 pm Wednesday, July 15 at the Cremation Society 7110 France Ave S. in Edina 952/924-4100. Dale will be laid to rest at Ft. Snelling in a private ceremony.