Existing-home sales in the US slumped to one of the slowest paces since 2010 in June, as sellers wait for mortgage rates to fall further, and buyers balk at stubbornly high prices.
The first half of 2024 saw GDP remain moderate, buoyed by robust consumer spending and continued business investments in technology and infrastructure. However, concerns over the housing market continued as mortgage rates remained elevated, which dampened buyer enthusiasm.
According to the Commerce Department, U.S. retail sales in June, excluding autos, rose by the most in three months. Retail purchases less motor vehicles rose 0.4% last month after an upwardly-revised 0.1% rise in May.
US inflation cooled broadly in June to the slowest pace since 2021 on the back of a long-awaited slowdown in housing costs, sending the strongest signal yet that the Federal Reserve can cut interest rates soon.
The Federal Reserve’s preferred measure of underlying US inflation decelerated in May, bolstering the case for lower interest rates later this year. The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.1% from the prior month.
According to the Commerce Department, housing starts fell 5.5% to a 1.3 million annualized rate in May. That was the slowest pace in four years. Building permits, which give a guide to future construction, fell 3.8%, also the weakest since 2020.