Interest boost: U.S. banks set a record by making more than $60 billion in profits in the second quarter, federal regulators said Thursday, up more than 25% from a year earlier. The Federal Deposit Insurance Corporation said the profit boost came because banks have been able to charge more interest on loans in recent months, and received a substantial lift from the tax law enacted last year that lowered corporate income tax rates.The lion’s share of the profits were earned by the nation’s nine largest banks. Read the full story.
Loan lagging: Long-term U.S. mortgage rates fell this week for the third consecutive week, yet they remain significantly higher than a year ago. Mortgage buyer Freddie Mac says the average rate on 30-year, fixed-rate mortgages ticked down to 4.51% from 4.53% last week. A year ago, the average was 3.86%. The interest charged on home loans have been running at their highest levels in seven years, although they remain below the long-term historic average. The average rate on 15-year, fixed-rate loans fell to 3.98% this week from 4.01% last week. Read the full story.
Fewer signs: Sales of new U.S. homes slumped 1.7% in July, the second straight monthly decline as the broader housing market appears to have lost some of its momentum despite an otherwise solid economy. The Commerce Department says newly-built homes sold at a seasonally adjusted annual rate of 627,000 last month, down from 638,000 in June and 654,000 in May. Despite the slowdown, new-home sales have risen 7.2% year-to-date. The average sales price has risen 5.8% from a year ago to $394,300. Read the full story.
