Morning Business Report: Home sales slow, Trump eyes tax cut, market rallies

Sales of previously owned U.S. homes fell in June to their lowest level since last September, as high mortgage rates and record home prices continue to weigh on buyers.

(LILAMAX)- Sales of previously owned U.S. homes fell in June to their lowest level since last September, as high mortgage rates and record home prices continue to weigh on buyers. According to the National Association of Realtors, existing home sales dropped 2.7% from May to an annual rate of 3.93 million units. Compared to a year ago, sales remained flat.

President Donald Trump announced his administration is considering eliminating capital gains taxes on home sales. Currently, sellers may owe taxes on profits above $250,000 for individuals or $500,000 for married couples filing jointly. The proposal could especially benefit longtime homeowners hesitant to sell due to hefty IRS bills.

On Wall Street, the Dow surged 500 points and the S&P 500 closed at a record high. Investors responded positively to a new trade deal with Japan and are optimistic about more agreements coming soon.

Health insurance premiums could soar next year. Expanded subsidies under the Affordable Care Act, which cut premiums by 44% for many Americans, are set to expire. Without congressional action, middle-class families could face increases of up to 75%. Lawmakers are exploring solutions, but no legislation has passed yet.

Starbucks has announced the return of its popular Pumpkin Spice Latte. It hits stores August 26, a few days later than last year but still ahead of fall’s official start on September 22. Seasonal drinks like the Pumpkin Cream Cold Brew and the new Pecan Crunch Oatmilk Latte are also making a comeback. Last year, seasonal items made up about 10% of Starbucks’ total sales.