U.S. home resales hit their highest level in nearly 9-1/2 years in June as low interest rates lured first-time buyers into the market and the number of Americans filing for unemployment benefits fell last week, underscoring the economy's strength.
Annualized U.S. single-family home prices rose less than expected in February, a closely watched survey showed on Tuesday. The S&P/Case Shiller composite index of 20 metropolitan areas rose 5.4% in February on a year-over-year basis, less than the 5.7% increase the month before and just below the 5.5% estimate from a Reuters poll of economists.
The end of April ushers in a more fraught period after the firm early quarter investment inflows and quarterly corporate earnings report responses. It is no secret that 70% of all corporate earnings reports beat estimates each quarter regardless of economic conditions. That is due to downbeat original estimates, where earnings reports are then predictably a bit better than expected. The Q1 2016 reports have been very typical in that regard.
U.S. home resales fell more than expected in October, with large declines in regions which have experienced the biggest price gains, but the underlying trend suggested housing remained on firmer footing.
U.S. construction spending climbed in August to the highest level since 2008, boosted by a surge in outlays for residential projects and giving a sign the housing market was helping the overall economy.