Investors got a view of the health of the housing market through the usual two key reports—new and existing home sales data. Existing home sales, which comprise about 90% of residential transactions, fell to a nine-month low thanks to high prices.
Underlying US inflation rose in June by less than expected for a fifth month, as lower car prices helped offset gains in other goods exposed to tariffs. The consumer price index, excluding the often volatile food and energy categories, increased 0.2% from May, according to Bureau of Labor Statistics data out Tuesday.
The Labor Department reported that initial jobless claims for the week ending July 5 fell by 5,000 to 227,000. The median forecast in a survey of economists conducted by Bloomberg called for 235,000 applications so, once again, the job market surprises to the upside.
Lawmakers passed and signed into law the One Big Beautiful Bill (OBBB) Act on July 4 after several weeks of debate. The law includes changes to the tax code, federal spending and lifts the debt ceiling by $5 trillion.
US job growth exceeded expectations in June, driven by a boost in public education hiring that helped bolster the labor market in the slowing economy.
This week data was released on both existing and new homes sales. According to the National Association of Realtors (NAR), previously owned home sales rose slightly in May by 0.8% to an annualized rate of 4.03 million in a report released on Monday.