• New home sales slipped 6.6% in June to stand at a seasonally adjusted annual pace of 676,000 units. That’s the third consecutive monthly decline, and the pace fell below 2019’s annual rate for the first time since April 2020.1
  • The number of completed new homes on the market stood at 36,000 units in June, a little more than half the number for sale in June 2020. In February and March, inventory was 33,000 units, the lowest level in the 21 years of the data series.1
  • The homeownership rate stood at 65.6% during the second quarter, unchanged from the first quarter of 2021. A year ago, the homeownership rate was reported as 68.1%, but a significant change in survey methods – from in-person visits to only
    telephone collection during several months in 2020 due to pandemic restrictions – likely skewed the results, although the Census Bureau is unable to say by how much.2
  • The economy expanded at a 6.5% annual rate during the second quarter, pushing total output above its pre-pandemic peak. Had the economy grown at the 2.3% average annual rate of 2015-19 since the end of 2019, it would have been 2.6% larger during the
    second quarter than it’s currently estimated it was.3
  • The deflator for personal consumption expenditures – the Federal Reserve’s preferred measure of inflation – rose 0.5% in June. Over the last four months, the PCE deflator has increased at a 6.7% annual rate, the strongest increase over a four-month span since the summer of 1982. The PCE deflator rose at a 1.5% average annual rate over 2015-19.4

Read the complete article  Keeping Current – 8-6-21

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