US New Home Prices Highest Since 2008

According to the latest available data from the US Census Bureau, new home sales climbed 25.4% year over year in June, alleviating fears that the housing sector was imminently headed for another downturn following concerns about the pace of housing starts and existing home sales.  On an annualized basis, new homes sales rose to 592,000, surging past expectations of 560,000.  More optimistic in all the data released yesterday was the median sales price which climbed back above $300,000 to $306,700, marking the highest levels since April.  However, there was some disappointment following the S&P Case-Shiller home price index report which showed the pace of price appreciation across the US slowing to 5.20% from 5.40% recorded during the prior period.  US equity benchmarks ended the day mixed, with the Nasdaq Composite leading the gains after climbing 0.24% during the cash equity session.

WTI crude oil fell to the lowest levels since April after reports from the American Petroleum Institute showed another large stockpile build in Cushing storage facilities that beat estimates by a wide margin.  Although the one silver lining to the latest data was the significant drawdown in gasoline inventories which fell by 420,000 barrels last week according their figures, the 1.400 million barrel build in Cushing is raising concerns about the pace with which inventories are filling.  This anxiety translated to another steep session of losses in WTI and Brent crude oil prices, with both instruments extending losses during the Asian overnight session.  Although API is a precursor to today’s Energy Information Administration report on the state of crude oil inventories, confirmation of API’s reading on Cushing could be enough to catalyze another selloff in prices later.  WTI futures for September delivery are currently trading below $43.00 per barrel.