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.
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.