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Weekly economic review & outlook
Housing activity continues to strengthen

NOV. 25, 2019

You Need to Know

Week in review

Existing home sales climb for October

Driven by solid job gains, low mortgage rates, and above-trend household formations, home sales continue to trend higher in 2019.

Housing starts up as well

Home construction is rising to meet increased demand from homebuyers for new builds, helped by relatively few existing homes for sale.

Week Ahead

Forecasts

New home sales projected to rise

New home sales are projected to rise as positive demand factors for owner-occupied housing combine with a low supply of existing homes.

A bump up in inflation helped by energy prices

After a one-month drop, the PCE price index is expected to jump by 0.3 percent, pushed up by energy prices. The core PCE should rise by a more modest 0.1 percent.

Data from the housing sector continue to improve as the combination of low mortgage rates, a still-solid job market with the lowest unemployment rates in 50 years, and strong household formations boosts housing demand. Existing home sales rose by 1.9 percent for October to an annualized pace of 5.46 million. This extended the uptrend for activity since the start of the year with sales for October up by 4.6 percent relative to a year ago.

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