Housing Market Trends and Economic News Update: November 22, 2024

Builder Optimism Rises: Homebuilder confidence reached a seven-month peak in November, driven by a sharp rise in expected sales for the next six months, which hit their highest level in two and a half years.
Construction Slows, Permits Up: October saw a drop in housing starts, largely attributed to hurricanes affecting the Southeast. However, a slight increase in permits indicates a potential rebound in the coming months.
Existing Sales Climb: For the first time since 2021, existing home sales posted an annual increase in October as buyers rushed to lock in lower mortgage rates during a brief dip.

Jobless Claims Drop: Last week’s unemployment claims fell to a seven-month low, hinting at stronger job growth in November after a slowdown in October.
Inflation Pace Quickens: Recent months have seen faster-than-expected price increases, raising concerns about whether the Federal Reserve can meet its 2% inflation target.
Fed Rate Outlook Shifts: The Federal Reserve’s outlook for interest rate cuts has shifted amid strong economic data and uncertainty over President-elect Trump’s proposed policies, including tariffs and tax cuts, which could fuel inflation. Initially expecting multiple rate reductions in 2025, the Fed is now signaling a more cautious approach, potentially limiting cuts to address persistent inflation pressures. Chair Jerome Powell emphasized a deliberate strategy, noting the economy’s strength and the need to avoid both overheating and stalling growth..

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