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Economic Commentary

Skyrocketing mortgage rates weaken home sales

June 27, 2022
illustration of homes in blue

The economic data last week were mostly weaker compared with consensus expectations. Existing home sales slumped, the flash purchasing managers indexes (PMIs) slowed (but remained in expansionary territory), while new home sales jumped unexpectedly. Overall economic growth is slowing in fits and starts, but there is still enough underlying strength to keep a positive outlook for now.

What we learned last week: (pg. 1)

  • Total home sales continue to decline
  • Flash PMIs hint at slower growth

What we’re watching this week: (pg. 2)

  • Growth in durable goods expected to be slower, but still positive
  • Growth expected for consumer spending while prices continue to rise
  • Growth likely to slow, but manufacturing should remain in expansion

View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead:

View this week's economic review & outlook