Housing Market and Economic News Update: July 19, 2024

Thompson Kane is dedicated to helping our community stay on top of the ever-changing landscape of the housing market and the economy. Let’s dive into the most recent developments:

This Week’s Housing Market News

• Builder Sentiment: U.S. builders continue to face challenges due to June’s higher mortgage rates for consumers and elevated rates for construction loans.
• Home Construction: While single-family housing starts reached an 8-month low in June, overall new home construction saw a 3% increase, driven by growth in multi-family homes.
• A Refinancing Bump: Last week’s interest rate drop had a significant impact on refinancing, with applications surging 15% to a 2-year high. However, purchase applications declined by 3% for the week.

This Week’s Economic Highlights

• Consumer Resilience: Retail spending remained steady in June, continuing the trend seen throughout the year. Consumers have shown resilience despite predictions of a potential pullback.
• Softening Economic Activity: The Federal Reserve’s Beige Book reported a softening in economic activity and anticipates slower growth through the end of this election year. 
• Interest Rates and Inflation: Federal Reserve Chair Powell indicated that interest rate cuts might occur before reaching the Fed’s 2% inflation target, provided inflation continues to decline.

Keeping you up-to-date with the constantly changing housing market

At Thompson Kane, we understand the importance of staying ahead in a rapidly changing market. Our goal is to equip you with the latest insights to help you make informed decisions and confidently navigate your business and financial endeavors. For more frequent updates, follow the Thompson Kane Newsfeed and connect with us on Facebook for bi-weekly news and valuable content. Your success is our priority, and we’re here to keep you informed every step of the way.