Financial News – Week of July 2, 2007
Sales of new single-family homes fell 1.6% in May, far better than the 6.2% decline Wall Street had anticipated, the Commerce Department said June 26. The median price of a new home fell 0.9% to $236,100 in May, down from $238,200 in May 2006.
Existing home sales fell 0.3% in May to 5.99 million units, the slowest sales pace in four years, the National Association of Realtors said June 25. The median price of an existing home was $223,700, down 2.1% from a year earlier, marking the 10th straight month that the price has shown a year-over-year decline.
Construction spending in May climbed 0.9%, the largest jump in nearly 18 months, and well above Wall Street’s expectation of a 0.1% rise, the Commerce Department reported June 29, 2007. Spending on residential construction, however, fell 0.8% to an annually adjusted rate of $549 billion, the 15th consecutive monthly decrease.
Orders to U.S. factories for big-ticket manufactured goods — expected to last three or more years — dropped by 2.8% in May, the largest amount in four months, and a far bigger slide than the 1% decline economists had forecast, the Commerce Department said June 27.Â A 22.7% plunge in commercial aircraft orders paced the decline.
Meanwhile, consumer spending in May rose by 0.5% for the second month in a row, the Commerce Department said on June 29, 2007. Â Incomes, which fuel spending, rebounded in May by 0.4%, after falling 0.2% in April.
This week look for updates on the unemployment rate on July 6, 2007.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
42 Reads Way, New Castle, DE 19720