MetroIntelligence Economic Update by P. DUFFY
July consumer credit use rise slumps to 6.2 percent annual rate
In July, consumer credit increased at a seasonally adjusted annual rate of 6.2 percent vs. 10.2 percent in June. Revolving credit (such as credit cards) increased at an annual rate of 11.6 percent, while non-revolving credit (such as loans for cars and tuition) increased at an annual rate of 4.4 percent.
More pending home sales canceling as housing market rebalances
As of the end of August, the share of pending home sales that fell through, then ended up back on market – measured weekly – had increased by 0.8 percentage points (2.0% to 2.8%) from the beginning of the year. The recent increase in contract cancellations is more evidence of a rebalancing in the housing market that has both eased buyer demand and given buyers who remain in the market more negotiating power than they have had for most of the pandemic. A greater share of lower priced homes have fallen out of contract than higher priced homes. This likely reflects affordability challenges taking their toll on buyers with relatively lower incomes as mortgage rates have risen.
Black Knight: July home prices see largest monthly decline since January 2011
Annual home price growth shifted from deceleration to decline in July as the median home price fell 0.77% from June – the largest single-month decline since January 2011. More than 85% of the 50 largest U.S. markets are at least marginally off their peaks through July, with home prices down by >1% in a third, and more than one in 10 seeing prices fall by 4% or more.