Weekly economic review & outlook
The housing market is hot
September 28, 2020
You Need to Know
Week in review
Fastest pace of home sales since 2006
Both existing and new home sales climbed further in August, up to the strongest annualized growth rates since 2006, highlighting a tremendous rebound for housing over the summer.
Jobless claims stabilizing at a still high level
There has been only a small downward movement in weekly jobless claims over the past month, a sign that the recent rapid gains in payrolls are slowing.
ISM manufacturing index should continue to climb
Continued growth in factory orders and strength in regional purchasing manager surveys suggest that the ISM manufacturing index rose for a fifth straight month.
Strong, but slower, job growth expected for September
While we expect growth in nonfarm payrolls to fall below seven figures for the first time in the recovery, gains sh0uld still be strong for September – with another drop in the unemployment rate.
The housing market extended its strong post-COVID surge into August. Demand continues to increase for owner-occupied housing, pushed up by record-low mortgage rates, a rebound in the job market, faster household formations, and an increased desire for “space.” Existing home sales rose by 2.4 percent to an annualized pace of 6.00 million units for August, while new sales climbed by 4.8 percent over an upwardly revised July figure to 1.01 million units (annualized). The August sales pace for both was the fastest since 2006.