Indicators – Threads became the fastest adopted app in history with 100M users in the first week. Nasdaq is rebalancing its portfolio as the tech giants Microsoft, Apple, Nvidia, Amazon, and Tesla are making up too much of the pie (44% of the value). The Consumer Finance Protection Bureau (CFPB) takes action against another large bank for illegal junk fees, withholding credit card rewards, and opening fake accounts.
Mortgage Rates declined nicely this week as Mortgaged Backed Securities (MBS) responded favorably to multiple inflation reports that showed inflation is on the decline. Rates are up approximately 1% from this time last year.
Inflation – the June Producer Price Index (PPI) showed a marginal 0.1% increase in June and year over year the increase is only 0.1% or essentially no inflation on the headline figure. When you look at the core rate, which strips out the more volatile food and energy figures, prices are up 2.4% year over year. The Consumer Price Index (CPI) increased 0.2% in the month of June but is down from 4% to 3% year over year growth. Inflation is declining.
Freight – shipments declined 1.9% last month and expenditures fell nearly 3% for a 25% year over year decline. This indicates lower shipping prices and overall inflation.
Home Values – Core Logic reported 0.9% home value gains in May and a 1.4% year over year gain. The Zillow Home Value Index hit an all-time high of $350,000 eclipsing the peak of July 2022. Month over month values increased 1.4% and are up nearly 1% from June 2022.
Mortgage Applications – to purchase homes increased 2% from last week and are down 26% year over year. Refinance applications declined 1% and are down 39% year over year.