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Weekly economic review & outlook
Lower mortgage rates boosting home sales

You Need to Know

Week in review

Existing home sales on the rise

Spurred by lower mortgage rates, homebuyers purchased more existing homes in July with sales up over the past year for the first time since 2018.

Leading indicators point to modest growth, not recession

The index of leading economic indicators was up solidly in July and the 12-month change edged lower but stayed above zero – both positive signs for continued growth.

Week Ahead

Forecasts

Core prices to trend higher in July

The core PCE price index should rise by 0.2 percent in July, with the 12-month trend rate edging higher but remaining below the Fed’s goal.

Personal income still on the rise

Rising wages should help to push up personal incomes by 0.4 percent for July – extending a solid streak for consumer income growth.

Existing home sales finally perked up in July with a 2.5 percent gain. This was primarily the result of reduced mortgage rates in the late spring/early summer period, as it represents purchase contracts made in the May/June period. At an annualized pace of 5.42 million units, July existing sales were 0.6 percent above year-earlier levels, the first positive reading since early 2018.

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