Fannie Mae released its July Home Purchase Sentiment Index (HPSI) showing that home purchase sentiment hit its plateau as high home prices stymie trade-up confidence. The HPSI fell in July for the second consecutive month, declining 4.2 points to 86.5, after hitting survey highs in April and May. The report went on to reveal that the net share of Americans who say it is a good time to buy a home fell 4 percentage points from last month to 24%. The net share of those who say it is a good time to sell fell 6 percentage points from last month's survey high to 41%.

U.S. Stocks are near unchanged as trade issues somewhat outweigh the strong earnings season. Last night, the White House completed plans to impose $16 billion in tariffs on imported Chinese goods while China countered with similar measures. The S&P 500 Stock Index closed at 2,858 yesterday, just shy of its all-time closing high of 2,872 hit back on January 26. Since January 26, China's Shanghai Stock Exchange has lost 22% due to the trade issues.

As the summer winds down, parents across the country begin to stock up on supplies as they usher off kids to the beginning of the new school year. Retailers are expecting a strong shopping season given the low unemployment rate, strong economic growth and high consumer confidence. Deloitte forecasts that back-to-school spending will rise 2.2% to $27.6 billion this year, with the average spending per household up slightly to $510 from $501 last year. That includes $112 on school supplies, up from $104 in 2017.