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Greenway's Markets in a Minute I 2020 GDP and New Home Sales Reports Are In

Jan 29
1:40
AM
Category | Markets in a Minute

  • The full year GDP for 2020 declined 3.5%, the worst year for the U.S. since the end of WWII. However, 4th qtr GDP grew at a 4% rate, led by gains in consumer spending.
  • At this week's meeting, the Fed voted to keep policy rates unchanged and committed to continuing the bond purchase program that has helped drive mortgage rates to all time lows.
  • Jobless claims fell more than expected last week, signaling a possible easing after increases in December and early January. Continuing claims also dropped to 4.77 million.

  • November home prices rose 9.5% according to Case-Shiller, one of the highest gains on record. Phoenix, Seattle, and San Diego continued to show the strongest price appreciation.
  • A recent Conference Board survey showed consumers more than willing to buy homes in the next 6 months, indicating the housing market will continue to underpin the economy.
  • Despite rising home prices, December's new home sales rose for the first time in 5 months, capping the best year since 2006 as record low mortgage rates drove demand.

 

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