Fed Rate Hold Drives US Home Sales Signaling US Economy Strong

Fed Rate Hold Drives US Home Sales Signaling US Economy Strong

$PHLX

FLASH: US home sales spiked in February to their highest mark in 11 months, a sign that the Fed’s halt in interest rate hikes is starting to boost the US economy.

The National Association of Realtors said on Friday existing home sales rose 11.8% to a seasonally adjusted annual rate of 5.51-M units last month.

That was the highest mark since March 2018 and well above analysts’ expectations of a rate of 5.1-M units. The 1-month percentage change was the largest since December 2015. January’s sales pace was revised slightly lower.

February’s rise came as mortgage rates fell following signals from the Fed that it was no longer eyeing rate hikes. Years of rising rates had put a damper on parts of the US housing market in Y 2018.

“It is quite a powerful recovery that is taking place,” said the chief economist with the National Association of Realtors (NAR).

The US housing market has also been held back by land and labor shortages, which have led to tight inventory and more expensive homes.

The PHLX Housing Index extended losses following the release of the figures although its decline was less steep than the broader stock market.

The median existing house price increased 3.6% from a year ago to $249,500 in February.

Making and Keeping America Great!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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