The MReport Webcast: Friday 6/24/2016

Sales of new single-family houses in May came in at a seasonally adjusted annual rate of 551 thousand, according to estimates released today by HUD and the U.S. Census Bureau. This is 6 percent below the revised April rate of 586 thousand, but 8 point 7 percent above sales figures from last May. The seasonally adjusted estimate of new houses for sale at the end of May was 244 thousand, a supply of 5 point 3 months at the current sales rate, which has been the norm for several months.

The median price of new houses sold in May 2016 was 290 thousand 400 dollars, with the average coming in at 358 thousand 900 dollars. Ralph McLaughlin, chief economist at Trulia, acknowledged May’s falloff, but said that the drop was to be expected, given April’s large jump in sales. He said, quote, To put it into perspective, May’s figure of 551 thousand is the second largest annual rate over the past year, eclipsed only by last month’s revised figure of 586 thousand. Close quote

The results of the Dodd-Frank Act Stress Tests conducted by the Federal Reserve on the nation’s 33 largest bank holding companies showed improved capital levels and credit quality, which strengthened their ability to lend during times of severe economic stress, according to the Fed on Thursday afternoon.  The hypothetical severe economic scenario for which the banks were tested would result in about 385 billion dollars in losses for the 33 firms tested.