Page 25 - ARUBA TODAY

BUSINESS Monday 22 october 2018
A25

US home sales fell in September to slowest pace in 3 years

By CHRISTOPHER RUGABER this month to their highest
Associated Press levels in seven years. Sales
WASHINGTON (AP) — U.S. fell 4.1 percent in Septem-
home sales fell for the sixth ber from a year ago.
straight month in Septem- "Without a doubt there is
ber, a sign that housing a clear shift in the market,"
has increasingly become said Lawrence Yun, chief
a weak spot for the econ- economist at the National
omy. Association of Realtors.
The National Association One sign of the shift is that
of Realtors said Friday that demand for existing homes
sales declined 3.4 percent is slowing. Home prices
last month, the biggest are rising at a slower rate
drop in 2 ½ years, to a sea- and the supply of avail-
sonally adjusted annual able houses, while low, is
rate of 5.15 million. That's increasing. Buyer traffic has
the lowest sales pace since also declined, Yun said.
November 2015. And with rents also stabiliz-
Hurricane Florence ing in many cities, many
dragged sales in North would-be buyers may not
Carolina, but even exclud- feel as much pressure to
ing the storm's effects, sales buy a new home.
would have fallen more In this Aug. 30, 2018, file photo a sale signs stand outside a home on the market in Denver. "Renting itself may be
than 2 percent, the NAR Associated Press seen as a better bargain
said. After reaching the as rising mortgage interest
highest level in a decade Still, analysts are mostly op- cent in the second quarter. Lynch, before the report rates, still-rising home prices
last year, sales of exist- timistic about the broader "Housing is no longer a tail was released. and sluggish wage growth
ing homes have declined economy. Most forecast wind for the economy, but Housing will likely weak- dent the affordability ad-
steadily in 2018 amid rap- growth will top 3 percent at the headwinds are blowing en further in the coming vantage of a typical mort-
id price increases, higher an annual rate in the July- very gently," said Michelle months. September's weak- gage," said Aaron Terrazas,
mortgage rates and a tight September quarter, after a Meyer, an economist at ness came before mort- senior economist at real es-
supply of available houses. robust expansion of 4.2 per- Bank of America Merrill gage rates jumped further tate data provider Zillow.q

American Express profits jump 22 percent, beating forecasts

By KEN SWEET scape than it did only a holding steady for several
Associated Press couple years ago. The quarters now.
NEW YORK (AP) — Ameri- Chase Sapphire Reserve Despite the rise in delin-
can Express said its third Card by JPMorgan Chase quencies, American Ex-
quarter profits jumped by became a major product press Chief Financial Of-
22 percent from a year ear- in the premium credit card ficer Jeff Campbell said
lier, as the credit card giant market, something that the defaults are "slightly
benefited from a lower tax solely belonged to Ameri- better than what we previ-
rate and increased spend- can Express with its Plati- ously expected." Like other
ing on the company's cred- num Card. large companies, AmEx
it cards. In response, AmEx has also benefited from a lower
The New York-based com- been adding benefits to its tax rate this quarter, due
pany said it earned a profit cards, like a $15-a-month to the Republican tax law
of $1.65 billion, or $1.88 credit on Uber, or, with the that was enacted late last
a share, which is up from recently revamped Gold year. The amount that the
$1.36 billion, or $1.51 a Card, a $10-a-month credit company set aside to pay
share, in the same period a on select dining outlets. This Oct. 4, 2016, file photo shows a mockup of an American income taxes was down 2
Express Platinum Card provided by the company in New York.
year ago. The results beat Meanwhile, AmEx has been American Express reports earnings Thursday, Oct. 18, 2018. percent from a year earlier,
analysts' expectations, who raising the annual fees on Associated Press even though AmEx's rev-
were looking for AmEx to its cards to make up for enues and profits grew.
earn $1.77 a share, accord- the increased benefits — a year earlier. AmEx takes a 20 percent rise in interest AmEx shares were up 0.5
ing to FactSet. something that appears a fee from merchants for revenue this quarter. percent to $103.40 in after-
"We delivered strong results not to be driving away new each time their cards are But that move into lending market trading.q
this quarter driven by high- or existing customers. Total used. comes with a risk that some
er card member spending, cards in force grew by 7 AmEx has also been en- customers will be unable
fee income and loans," said percent from a year earlier, couraging its users to main- to repay their debts. The
Stephen Squeri, the com- despite the fee increases. tain a balance on their company's net charge-off
pany's chairman and chief American Express card us- cards as well, collecting rate, or the percentage of
executive officer. Squeri ers spent $294.7 billion on more interest income par- loans AmEx sees as unre-
took over AmEx early this their cards globally last ticularly as interest rates coverable, creeped up to
year, when then CEO Ken- quarter, an 8 percent jump rise. Total loans held by 2.5 percent from 2.1 per-
neth Chenault retired. from a year earlier. In the AmEx users were $77.6 bil- cent a year earlier. That fig-
The results came as Ameri- U.S., the company's largest lion in the quarter, up from ure still remains among the
can Express faces a much market, card user spend- $67.9 billion a year earlier. lowest in the industry, but it
more competitive land- ing was up 10 percent from That helped contribute to has been moving higher or