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

This week’s financial and housing market activity update…

The Economy

• 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.

Housing Market News

• 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%.
  
  

A Parting Thought

In the words of the 24th Dalai Lama, “Happiness is not something ready made. It comes from your own actions.”