Indicators coming in weak

<p>Kia ora,</p><p>Welcome to Thursday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news many global indicators are coming in quite weak today.</p><p>First, American <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank"><strong>existing home sales dropped</strong></a> -5.4% in June from May to an annual rate of 5.12 mln in June and a two year low and well below market forecasts of a 5.38 mln sales rate. It is the fifth consecutive month of retreat as tougher affordability continues to take a toll on potential home buyers. The median price for all housing types was US$416,000 (NZ$668,000), a record high and up more than +13% in a year. Total unsold inventory rose sharply, up almost +10% from May to 1,260,000 units.</p><p>It will be no surprise then that <a href="https://www.mba.org/news-and-research/newsroom/news/2022/07/20/mortgage-applications-decrease-in-latest-mba-weekly-survey" target="_blank"><strong>mortgage applications are falling</strong></a>. Last week they slid more than -6%, indicating that the June housing activity drop has continued into July, because this was the third consecutive weekly fall in mortgage applications - and the largest of them. The mortgage interest rate rose last week, after a few weeks of declines, and this won't help affordability or sales.</p><p>There was a well-supported <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220720_2.pdf" target="_blank"><strong>UST 20yr bond auction</strong></a> earlier today and that brought a median yield of 3.33% which was actually lower than the 3.41% at <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220622_3.pdf" target="_blank"><strong>the prior equivalent event</strong></a> a month ago.</p><p><a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220720/dq220720a-eng.htm?HPA=1