The minutes of the Fed's Federal Open Market Committee (FOMC) indicate that Fed policymakers aren't concerned about low inflation rates as an obstacle to raising the target federal funds rate.
Case-Shiller reported that home prices hit their lowest pace in two years. According to the Case-Shiller 20-City Home Price Index for October, home prices fell in 10 cities, rose in eight cities and were unchanged in two cities. In other news, pending home sales increased and weekly jobless claims rose.
Last weekâs economic news included several housing related reports. Housing markets continue to cool as November reports on existing and new home sales fell below expectations. New Jobless claims were lower than expected by 10,000 claims.
In comparison to 2013, the 2014 Arizona real estate market experienced a fairly balanced market, meaning the number of homes that were available for sale and the number of buyers for those homes was approximately equal. The 2013 market favored sellers because there was a shortage of homes available for sale in comparison to buyer’s demand. Due to high
Sales of existing homes dropped to a seasonally-adjusted annual rate of 4.93 million as compared to expectations of a 5.18 million existing homes sold. Projections were based on October's reading of 5.25 million.
Last week's scheduled economic events were few but informative. Housing related reports included the National Association of Home Builders/Wells Fargo Housing Market Index for December, which stayed close to a nine-year high reading of 59 in September. December's reading was 57 and fell two points shy of the expected reading of 59.
The Federal Open Market Committee (FOMC) said in its last statement for 2014 that although economic conditions have improved at a moderate pace, the Fed believes that the target federal funds rate of between 0.00 and 0.25 percent remains "appropriate." While labor markets show expanding job growth and lower unemployment rates, FOMC members noted that housing markets are recovering slowly.
Although there were few scheduled economic events related to mortgages and housing, last week brought an article about housing projections for 2015. Other news included increased job openings along with lower than expected jobless claims and higher mortgage rates.
Last week's economic reports related to housing and mortgages were few, but construction spending, the Fed's Beige Book report, non-farm payrolls and the national unemployment report indicated trends for the end of the year.
Last week's scheduled economic events were packed into Tuesday and Wednesday, but several housing-related reports were released including the Case-Shiller National and 10-and 20-City Home Price Indices for September, The FHFA House Price Index also for September, and New and Pending Home Sales for October.
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