Weekly economic review & outlook
Strong sellers’ market for housing continues
July 26, 2021
You Need to Know
Week in review
Housing starts rise solidly in June
Despite continued concerns about rising costs and a shortage of workers and buildable lots, new home construction accelerated for June as builders respond to strong market demand.
Existing home sales rise but so do prices for homebuyers
Unit sales edged higher for June while the median sales price climbed to an all-time high and supply conditions remained exceptionally tight.
Massive growth in real GDP expected
Although constrained by supply chain disruptions and a shortage of workers, soaring demand almost certainly led to substantial growth in real GDP for the second quarter.
Strong gains likely for consumer spending and core inflation
Widespread lifting of in-person restrictions likely led to a large gain in consumer spending, while strong upward price pressures continued for June.
Home construction picked up for June even as builders contend with rising costs, a lack of workers, and few buildable lots. Housing starts rose by a solid 6.3 percent, climbing to an annualized pace of 1.64 million units. There were gains for both single-family and multifamily units as households continue to show strong interest in all types of housing. While below the recent March peak, June’s level of starts was the third highest monthly reading in the past 14 years.