Good news was reported this morning in the housing sector as the spring buying gets underway. Sales of new single-family houses rose nearly 5% in February from January recording the largest monthly gain in 11 months. The Census Bureau reports that New Home Sales came in at an annual rate of 667,000 in February versus the 618,000 expected. Sales were marginally higher year-over-year by 0.6%. Across the country, big gains were seen in the Northeast and Midwest with a slight gain in the South while the West saw flat sales. The average sales price was $379,600 with inventories were at a 6.1 month supply.
Inflation remained subdued in February as demand for goods and services eased a bit with somewhat slowing growth. The Federal Reserves favorite inflation gauge, the Core Personal Consumption Expenditure (PCE), fell to 1.8% year-over-year in January from the 2% recorded in December. The Fed has a target rate of 2%. If inflation remains low, the Fed will be on hold for any rate hikes in 2019 and could even cut in the fall.
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