Consumer sentiment surges and inflation expectations plunge
With inflation easing and interest rates dropping to the lowest level in four months, consumer perception of the future economic outlook has also improved. The index of consumer expectations rose sharply from 56.8 in November to 66.4 in December.
Job growth holds up as the economy gradually slows down
The November jobs report came in stronger than expected, with employers adding a seasonally adjusted 199k jobs last month. Despite the November jobs report coming in more favorable than anticipated, the labor market continued to show signs of cooling.
Mortgage rates at four-month low
Mortgage rates dropped again for the sixth straight week as soft economic data continued to suggest inflation easing, albeit slowly, as the year comes to an end.
Home purchase sentiment sets new low
Consumers remained pessimistic about the housing market conditions, despite home prices softening and interest rates declining more than 70 bps from the recent peak. The share of consumers who said that it was a good time to buy reached low at 14%, according to Fannie Mae national housing survey.
Homeowner equity bounces back in Q3
Homeowner equity increased on an annual basis in Q3 2023 after dipping slightly in the first two quarters of the year, according to the latest CoreLogic Homeowner Equity Insights.
Despite stronger-than anticipated job growth in November, hiring moderated from earlier this year and the labor market continued to cool.
Home sales could see a kick-start at the beginning of 2024 and the market will hopefully carry that momentum throughout the next 12 months.
SOURCE : California Association of Realtors