Progress Stalls on Inflation<\/h2>\n
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October\u2019s Personal Consumption Expenditures (PCE) showed that headline inflation rose 0.2% from September, while the year-over-year reading rose from 2.1% to 2.3%. Core PCE, the Fed\u2019s preferred measure which strips out volatile food and energy prices, rose 0.3% monthly. The year-over-year reading increased from 2.7% to 2.8%, remaining near the lowest level in over three years.<\/p>\n
What\u2019s the bottom line?<\/strong> While annual inflation did move higher in the wrong direction, the increase is partly due to a lower figure from October 2023, which was removed from the rolling 12-month calculation and replaced with October 2024\u2019s 0.3% reading. Looking ahead, readings for January through April 2024 are higher comparisons, meaning progress lower toward the Fed\u2019s 2% target may be easier next year when those figures are replaced.<\/p>\n New Home Sales, which measure signed contracts on new homes, plunged 17.3% from September to October, with the 610,000-unit pace reaching the lowest level since November 2022. Signed contracts were also 9.4% lower than they were in October of last year.<\/p>\n Regarding inventory, there were 481,000 new homes for sale at the end of October, which was up slightly from 471,000 in September. However, only 113,000 were completed, with the rest either under construction or not even started yet, so more available supply is still needed.<\/p>\n What\u2019s the bottom line?<\/strong> Almost the entire decline in October\u2019s signed contracts came in the South, which was severely impacted by Hurricanes Helene and Milton during this time. In addition, rates moved higher in October while some buyers also mentioned they were staying on the sidelines until after the election. Pending Home Sales, which are signed contracts on existing homes, rose 2% from September to October per the National Association of REALTORS\u00ae (NAR). This marked the third consecutive monthly rise as sales were also 5.4% higher than they were a year earlier.<\/p>\n What\u2019s the bottom line?<\/strong> Contract signings rose across all regions of the country in October as NAR\u2019s Chief Economist Lawrence Yun, noted that \u201chomebuying momentum is building after nearly two years of suppressed home sales.\u201d Yun added that, \u201cEven with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the <\/span>National Brownie Day is December 8, though these Cocoa Brownies from Food Network make for a decadent dessert any day of<\/span><\/span> the year. Yields 16 brownies.<\/span><\/span>Hurricanes, Higher Rates Hurt New Home Sales<\/h2>\n
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\nThese factors combined all contributed to October\u2019s decrease in activity for new construction homes.<\/p>\nPending Home Sales Beat Estimates<\/h2>\n
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\nmarket.\u201d<\/p>\nHome Price Gains Continue<\/h2>\n
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<\/p>\nThird Quarter GDP Holds Steady at 2.8%<\/span><\/span><\/span><\/h2>\n
Initial Jobless Claims inched down another 2,000 in the latest week to a 7-month low, with 213,000 people filing for<\/span><\/span> unemployment benefits for the first time. However, Continuing Claims rose by 9,000 as 1.907 million people are still receiving<\/span><\/span> benefits after filing their initial claim.<\/span><\/span><\/div>\nFamily Hack of the Week<\/span><\/span><\/h2>\n
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