Existing Home Sales Slow Modestly

- Existing Home Sales for July fell to 7.16M versus estimates of 7.25M and 7.35M in June.

BOTTOM LINE: US sales of previously owned homes slowed in July, leaving the rate of purchases at the third-highest on record as low interest rates and growing employment supported demand, Bloomberg reported. The median price of an existing home rose .5% to $218,000 in July. The median price is 14% above year-ago levels. Re-sales fell 7.5% in the West, 3.3% in the Northeast and 1.8% in the Midwest. The South was unchanged. The supply of homes for sale increased to 4.6 months’ worth, the highest since November 2003, from 4.4 months’ worth in June. I continue to believe the rate of home price appreciation will slow over the coming months, not plunge.