Existing home sales have fallen significantly this year

Housing data showed a continued cooling in activity for June, slowing to about the levels seen during the recovery from the Covid lockdowns. While the declines were larger than expected, they followed from falling demand in the face of sharply higher mortgage rates and house prices. In other economic news, the index of leading economic indicators declined again, but does not yet signal that a recession is imminent.

What we learned last week: (pg. 1)

• Existing home sales have fallen significantly this year
• Downward trend for single-family starts

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

• Annual house price gains remain above 20 percent
• Another down quarter for GDP
• PCE inflation should moderate soon — but not yet