Markets in a Minute, Housing Market News, November 17, 2023

This week’s financial and housing market activity update…

The Economy

• October’s consumer price index (CPI) showed a better-than-expected slowdown in inflation. This is naturally spurring predictions that the Federal Reserve may continue to pause its aggressive interest rate hikes.
• The producer price index for October also declined substantially, reversing a 3-month uptrend and posting the largest monthly drop since 2020. This indicates easing inflationary pressure.
• New jobless claims increased last week while ongoing unemployment benefits reached their highest level in nearly 2 years, pointing to lingering labor market weakness.

Housing Industry Updates

• Builder sentiment weakened in November as over one-third of homebuilders reported discounting prices by 6% on average, according to a new survey.
• Mortgage demand rose to its highest level in 5 weeks as rates declined, with purchase applications increasing 3% week-over-week.
• Nearly 40% of recent homebuyers under 30 used family gifts or inheritances for their down payment, according to Redfin data, highlighting the importance of family support.

Stay up on the latest developments in the industry to make informed decisions for your business as well as your personal fiscal matters.

✅ Timely Homeowner’s Tip: Heating Maintenance. Now’s a great time to change the air filter if you have a forced-air furnace. It’s one of the easiest things you can do to keep your home’s HVAC system running efficiently and safely. It can also save you money on energy bills. Mark your calendar to replace filters every 3 months during the cold season. Note: High quality filters trap more dust and allergens, but need changing more often.