Tag Archive for ‘economics’

New Home Sales Hit Post-Recession High in November

Contracts for new, single-family home sales expanded by 17.5% in November to a 733,000 seasonally adjusted annual rate, according to estimates from the joint release of HUD and the Census Bureau. The particularly strong growth rate was due to a large downward revision for the October estimate (624,000, originally 685,000). However, the November sales rate was the fastest pace since July 2007. The expansion is… Read More ›

Housing Share of GDP: Third Quarter 2017

With the release of the final estimate of third quarter 2017 GDP (a 3.2% annual growth rate), housing’s share of gross domestic product (GDP) declined slightly to 15.3%. However, the home building and remodeling component – residential fixed investment – held steady at 3.4%. Housing-related activities contribute to GDP in two basic ways. The first is through residential fixed investment (RFI). RFI is effectively the… Read More ›

Economy Grows in Q3, Exceeding Potential

The Bureau of Economic Analysis (BEA) reported that the economy, as measured by growth in real gross domestic product (GDP), rose by 3.2 percent in the third quarter of 2017. The third estimate of third quarter 2017 GDP growth is slightly less than the 3.3 percent growth rate recorded in the second estimate, but faster than the “advance”, or initial,… Read More ›

Existing Sales Surge 5.6% in November

November existing sales embraced an end of the year rally, increasing 5.6% to the highest level since December 2006; but the first-time buyer share of 29% continued to disappoint. The National Association of Realtors reported 44% of homes sold last month were on the market less than a month, a slightly slower pace than the 47% last month. The November… Read More ›

Most States Saw Permits Growth Over October YTD

According to the Census Bureau’s Building Permits Survey (BPS), over the first ten months of 2017 the total number of permits, which included single-family and multi-family, issued nationwide on a not seasonally adjusted basis reached 1,070,750. This is 6.8% ahead of its level over the first ten months of 2016, 1,002,139. These data are taken from the Builder Permits Survey… Read More ›

Strong Housing Starts Estimate Matches Rise in Builder Confidence

Total housing starts increased in November, with strong readings from the single-family sector. Total starts increased 3.3% to a 1.3 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. The headline number was supported by strong numbers from single-family home building. Single-family starts increased for the month, rising 5.3% to a 930,000 seasonally adjusted… Read More ›

Builders Confident As Market Primed to Expand in 2018

Builder confidence in the market for newly-built single-family homes increased five points to a level of 74 in December on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) after a downwardly revised November reading. This was the highest report since July 1999, over 18 years ago. Builder confidence has improved in 2017 on hopes of an improved regulatory environment… Read More ›

Headline Inflation Accelerates, Core Inflation Slows

The Consumer Price Index – Urban Consumers (CPI) rose by 0.4 percent on a seasonally adjusted basis over the month of November and 2.2 percent over the past 12 months on a not seasonally adjusted basis. According to the release, energy prices accounted for three-fourths of the increase in the monthly change in headline inflation. Core CPI, which excludes more… Read More ›

Fed Raises Key Rate, Balance Sheet Normalization to Accelerate in January

In its statement following its December 12-13, 2017 meeting, the Federal Open Markets Committee (FOMC) decided to raise the target range for the federal funds rate to a range of 1.25 to 1.5 percent, a decision that was widely expected. Despite the increase, the FOMC believes that the “stance of monetary policy remains accommodative”. As illustrated by the Federal Reserve… Read More ›