Norhill Wealth Strategies

Mixed news for housing market
The scorching heat wave that set record temperatures across much of the nation didn’t extend to the economy, which remains tepid at best according to the latest readings. There was a rise in the Conference Board’s index of leading economic indicators and a bump in new residential construction. However, existing-home sales dropped for the third straight month as President Barack Obama and congressional leaders continued to negotiate over an increase in the nation’s debt limit.

Leading indicators advance
The index of leading economic indicators rose 0.3% in June, less than May’s 0.8% jump but still an encouraging sign that April’s -0.3% reading represented temporary factors and was not part of a larger trend. Compared to June 2010, the index was about 6% higher. Five indicators rose in June, with real money supply the largest contributor, followed by interest rate spread. Stock prices were the largest detractor, along with consumer expectations. The coincident index, which measures current economic activity, inched ahead 0.1%. The indexes are a compilation of indicators that can provide insight into both current and future activity in the broader economy.

Tumble continues for existing home sales
Sales of existing homes fell 0.8% in June to an annualized rate of 4.77 million. The monthly decline-the third straight-was unexpected but attributed to a rise in canceled contracts and the tough economy. Sales were down 8.8% compared to June 2010, when the first-time home buyer tax credit was still in effect. Most of the decline was the result of condominium sales, which dropped 7%. Single-family home sales were unchanged. Across the regions, sales rose slightly in the Midwest, were stable in the South, and fell in the Northeast and West. Compared to a year ago, the median existing-home price was up 0.8%, to $184,300.

The economic week ahead
Next week’s slate of economic news is a bit heavier. Reports on consumer confidence and new-home sales are scheduled for Tuesday, followed by durable goods and the Federal Reserve’s Beige Book nationwide survey of economic activity on Wednesday, and employment costs and real gross domestic product on Friday.

Markets Update

Warren Elkin of Norhill Financial is your safe money strategist.  When it comes to your hard earned dollars, he can keep your money secure as it grows.  Warren Elkin can be reached toll free at 877-476-5051- or by email at elkininc@aol.com.  To learn more about him check out www.warrenelkin.com.