Big Changes at Treasury: What It Means for You
Updates on leadership, housing, and inflation.
Join me in our ‘Weekly Market Update’ to decipher what to expect in the coming weeks & months.
Happy Wednesday! Brian Manning here with the weekly update. Let’s get right to it!
First of all, I just want to wish everybody a very happy Thanksgiving. I hope you enjoy your time off. I also want to thank everyone who supports us in our business. Everyone on our team is extremely grateful and appreciative of you and we thank you so much. I hope everybody has a wonderful Thanksgiving. As far as our hours are concerned, we will be available today, all day, thanksgiving day, and all weekend, 8 AM to 8 PM. So if you have any questions, or need a revised pre-approval, please give me a call. You can reach me on my cell phone or email.
News for this week: first we have Monday. Scott Bessent has been brought to the forefront of the conversation. He’s going to be the new incoming treasury secretary. This is a really important job as it is impactful for the economy. He’s one of the founders of the key group hedge fund. He’s thought of as being an intelligent person and level-minded, especially when it comes to tariffs and how they could potentially be used. The markets reacted favorably on Monday to his nomination because of the favorable overall sentiment of his potential for the U.S. economy.
On Tuesday this week, we had new home sales. New home sales were down 17% on a month-over-month basis. But if we look at the catalyst of what drew this number down, it was the states in the South. In the prior month, these states had a lot of hurricanes, unfortunately, and hurricanes definitely had an impact on new home sales. New home sales are signed contracts for new construction. So I’m not surprised to see a lower number there. We’ll have to wait and see if this rebounds, but it’s really the South that was the contributing factor to the reduction in new home sales.
Today, Wednesday, is when we get PCE. The PCE is the personal consumption expenditure. This is the Federal Reserve’s favorite gauge of inflation. There are two types of, PCE readings that we look at. One of them is the headline number, which is really everything all in. The second one is the core rate which strips out volatile items such as food and energy. The headline number came back at 2.3% and the core rate came back at 2.8%. Both of the numbers were slightly elevated from the prior months but in line with expectations. Because of this, markets reacted favorably I truly think we’re going to continue to see struggles with making meaningful inflation progress. Part of the reason why I say that, and we’ve talked about this a lot in the past, is going to be because the of shelter costs. These readings are still very elevated. I think we have a couple of months of challenging numbers for inflation here, but right now the markets are happy with what they’re seeing because everything is in line with expectations.
We also have pending home sales. Pending home sales today on a month-over-month basis were up 2%. That’s right. So this is now three months in a row where we’ve seen pending home sales go up. It’s exciting to see. We’re continuing to see great traction in the housing market. I’m very bullish on the market for next year, but it’s great to see pending home sales increase on a month-over-month basis of 2%.
I’m around. If you have any questions, let me know. I hope everybody has a wonderful Thanksgiving. Happy Wednesday. Have a great day!
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