Morning Report: New Home Sales highest in 7 years 6/23/15

Stocks are higher this morning on optimism for a Greek deal. Bonds and MBS are down.

New home sales rose 546k in May, higher than the 523k expectation and the upward-revised 534k April number. We will hear from homebuilding giant Lennar tomorrow. This is the highest number in 7 years, which will hopefully alleviate the problem of low inventory.

Durable Goods Orders fell 1.8% in May. April was revised downward from -0.5% to -1.5%. Capital Goods Orders ex defense and air (which is a proxy for business capital expenditures) rose 0.4% in May after falling a revised 0.3% in April. The low CAPEX numbers were largely driven by the decline in oil prices, which appear to have stabilized.

Home Prices rose 0.3% in April, according to the FHFA. The index is now roughly 2.3% below its March 2007 peak and corresponds to Feb 2006 prices. Note the FHFA index is narrower than the other indices like Case-Shiller in that it only looks at homes with a conforming mortgage. As usual, the West coast did the best, while the Northeast lagged.

Tspiras surrenders. That is the headline in Bloomberg regarding the Greek situation. Greece has more or less offered to meet the demands of their creditors. The glass of ouzo is close to being full.

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