Markets in a Minute, Housing Market News, September 28, 2023

This week’s financial and housing market activity update…

In September, consumer confidence reached a four month low. The ongoing persistence of inflation, concerns about a possible recession and interest rates continued to weigh heavily on the minds of consumers. The possibility of a disruptive government shutdown has also had a significant influence on the outlook of many consumers. [Reuters]
August saw a 0.2% uptick in orders for durable goods manufactured in the United States–a rebound from July’s drop. An upswing in machinery and various other product categories managed to offset a dip in business spending.
In addition to continuing elevated inflation, last week witnessed a slight increase in unemployment claims. However, the big picture provides a more positive landscape than some of the ongoing statistics suggest. In spite of ongoing Fed interest rate hikes, the economy and job market continue to be strong and a recession has yet to develop.

The real estate market witnessed some noteworthy developments in August. The National Association of Realtors [NAR] reported that pending home sales took a sharp dip of 7.1% nationally during the month, dropping in all four U.S. regions. Sales of new single-family homes in the U.S. were down more than expected in August as well, but rose slightly in the Northeast.
On the property front, U.S. house prices exhibited resilience in July, registering a 0.8% increase from June and a solid 4.6% growth year-over-year, as per the FHFA House Price Index.
The mortgage landscape revealed some challenges, with purchase mortgage applications experiencing a 2% decline for the week. This downturn also highlights a significant gap, with applications trailing behind last year’s pace by 27%.