The market is bouncing back nicely today, even technology, which struggled early after President Trump hinted at some kind of tax action against Amazon. (Jeff Bezos is the founder of Amazon and on the verge of becoming the richest man in the world, but he also owns the Washington Post, which has run virtually non-stop negative articles against the President.)

Today however is all about the banks, as the conclusion of the Comprehensive Capital Analysis & Review (Stress Test) will decide how much they can return to their shareholders.  Consensus sees $120 billion.

Critically low supply, especially in the lower end price range where first time home buyers are most impacted, and higher prices is leading the decline. 

• Homes under $100,000 -7.2% y/y
• Homes between $100-$250,000 +26% y/y
• Homes between $750,000-$1M =29.1%

Another contributor to the decline may be weaker financial and economic confidence as more are beginning to think that tax reform and infrastructure initiatives may not happen this year.  Pending home sales, fell regionally across the board with the highest decline in the west.