Fannie Mae released its Home Purchase Sentiment Index (HPSI) showing that the index rose slightly in November due in part to rising incomes. The HPSI rose 0.5 points to 86.2. Within the report it showed that Americans who said it is a good time to buy a home rose 2 percentage points, while the net share who said it was a good time to sell was unchanged. Doug Duncan, senior vice president and chief economist at Fannie Mae said, “Consumers’ perceptions of growth in their household income reached a survey high this month, helping to absorb some of the impact of increasing mortgage rates on housing market activity."
Wholesale inflation from the Producer Price Index (PPI) declined in November to 0.1% from 0.6% and just above expectations of 0.0% due to falling energy prices. The Core Rate, which excludes volatile food and energy, fell to 0.3% from 0.5%. On an annual basis, headline PPI fell to 2.5% from 2.9%. Inflation is not getting hotter, but it may actually be getting cooler, like in other parts of the globe. Tomorrow, the more closely watched Consumer Price Index will be released. The Fed will be watching this number for any signs of consumer inflation.
Volatility is the name of the game in the stock markets for the past few months and it hasn't been easing up one bit. Yesterday, the Dow Jones Industrial Average fell by 507 points only to close with a modest 34 point gain. This morning, the index was up 350 points then gave back two-thirds of the gains. The big swings have been caused by trade headlines between the U.S. and China and fears of slowing global growth along with uncertainty surrounding the interest rate hikes from the Federal Reserve.
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