Weekly economic review & outlook
The housing market is back
AUG. 24, 2020
You Need to Know
Week in review
Existing home sales complete a v-shaped recovery
With July gains breaking the record set just a month earlier, the annualized pace of existing home sales rose to their highest level since December 2006.
Housing starts climb close to pre-COVID pace
A third straight month of strong growth in housing starts brought their pace close to the pre-COVID level of January and February.
New home sales should climb even higher
New home sales are expected to rise again as housing demand remains strong and a limited supply of existing homes for sale continues to push homebuyers into the market for new homes.
Consumer spending set for continued strong growth
As massive job gains continue, so should growth in consumer spending, which is still well below where it was before the economic shutdown.
Another month of solid growth expected for durable goods
We project durable goods orders to grow by 3.6 percent for July, somewhat slower than recent months but still a solid number.
Existing home sales had outsized growth for a second straight month in July, jumping by 24.7 percent and breaking the record for a one-month increase set just a month earlier (June’s growth was 20.7 percent). July’s annualized pace of sales climbed to 5.86 million units, beating pre-COVID levels early in the year. In fact, July’s pace was the highest since December 2006, and total home sales (new plus existing) are expected to be at their highest level since that same month (pending the new home sales number this week).