Sales of new single-family homes fell by 0.7% in September from August to an annual rate of 701,000 units, which was just below the 703,000 expected. Compared to September 2018, new home sales surged 15.5% from 607,000 units. The median sales price of new houses sold in September 2019 was $299,400. The average sales price was $362,700. Monthly supply was at 5.5 months, just below six months which is seen as normal. Sales declined in the Northeast, South and West with a gain seen in the Midwest.
From global central bank news, the European Central Bank left its benchmark interest rate unchanged and will begin quantitative easing on November 1. The US Federal Reserve will be cutting the benchmark Fed Funds Rate at next week's Federal Open Market Committee meeting that kicks off on Tuesday and ends Wednesday at 2:00 p.m. ET with the release of the monetary policy statement. Fed Chair Powell has stated that the central bank will "act as appropriate to support continued (economic) growth and a strong job market and that there's no reason why the expansion can't continue." The global punch bowl is back.
Quantitative easing or QE from Investopedia: Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to increase the money supply and encourage lending and investment. Quantitative easing increases the money supply by purchasing assets with newly created bank reserves in order to provide banks with more liquidity.
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