Credit Sesame’s personal finance news roundup November 30, 2024. Stories, news, politics and events impacting personal finance during the past week.
Pending home sales rise again in October 2024
The National Association of Realtors’ Pending Home Sales Index (PHSI) rose by 2% in October. That was the third consecutive month that the PHSI increased. The PHSI is considered a forward-looking indicator of home sales because it is based on when purchase contracts are signed as opposed to when sales are closed. All four regions of the United States have shown growth in pending home sales over the most recent month and year. The Northeast region had the fastest growth in October, with a 4.7% increase in pending home sales. The West led the way over the past 12 months, with a 16.8% increase in pending home sales since October 2023. See report at NAR.Realtor.
Personal income shows large increase in October 2024
Personal income grew by 0.6% in October. That was twice September’s growth rate and the highest monthly growth since March. The Personal Consumption Expenditures (PCE) price index showed 0.2% inflation during October, consistent with September’s inflation rate. The PCE price index is up by 2.3% over the past year, just slightly above the Federal Reserve’s target of 2.0%. However, core inflation, which excludes the volatile food and energy sectors, grew by 0.3% in October and by 2.8% over the past twelve months. The PCE price index is significant because it’s the index the Fed uses to measure progress toward its inflation goals. See personal income report at BEA.gov.
Home prices eased slightly in September 2024
The most recent data from the S&P CoreLogic Case-Shiller US National Home Price Index shows a 0.10% decline for the most recent month. This was the second consecutive monthly decline for the index. Despite the recent easing of home prices, the index is still up by 3.89% over the past year. See index details at SPGlobal.com.
Mortgage rates may be leveling off in late November 2024
30-year mortgage rates dipped slightly last week, falling by three basis points to 6.81%. More significantly, the past month has seen mortgage rates stabilize somewhat after a sustained climb. Over the past four weeks, mortgage rates have fluctuated within a range of just six basis points. Previously, 30-year rates had risen by 71 basis points in just six weeks. It’s a bit of a different story for 15-year mortgage rates. After appearing to stabilize over the previous four weeks, 15-year rates jumped by eight basis points last week to reach 6.10%. See mortgage rate data at FreddieMac.com.
Consumer confidence improves again in November 2024
The Conference Board’s Consumer Confidence Index rose for a second consecutive month in November. Both the component of the index that reflects current conditions and the component that reflects future expectations showed improvement. The Present Situation Index was up by 3.5% from the prior month. The Expectations Index was up more modestly, rising by just 0.4%. Even though it made little progress in November, the Expectations Index remains well above the level traditionally associated with approaching recessions. The Expectations Index had spent most of the time from late 2021 through early 2024 at a level suggesting a recession was imminent. However, it has strengthened considerably in recent months. See details at Conference-Board.org.
Americans move south to be closer to family and friends
The National Association of Realtors reported that the South was the most popular destination for people who relocated recently. 46% chose the South, compared to 25% who moved to the West, 18% to the Midwest and 11% to the East. Among people relocating, being closer to family and friends was the leading reason for the location they chose. 30% said this drove their decision. Getting more home for the money was the second biggest reason behind the location people chose, with 21% citing this as their primary goal. See details at NAR.Realtor.
GDP growth estimate holds steady
The second quarterly estimate of GDP was in line with the advance estimate released a month ago. Both estimates showed a 2.8% inflation-adjusted annual growth rate for the third quarter of 2024. This represents a mild cooling of growth from the second quarter’s 3.0% growth rate. Still, this marks the tenth consecutive quarter of inflation-adjusted GDP growth. See GDP report at BEA.gov.
Most consumers intend to use credit smartly in the 2024 holiday season
A consumer poll by TD Bank found that many consumers plan to use a couple of money-saving spending techniques this holiday season. 42% say they will use debit cards this holiday season, compared to 34% who expect to use a credit card. Using a debit rather than a credit card eliminates the risk of incurring interest charges by carrying a credit card balance. Also, 62% of consumers who plan to use a credit card or personal loan this holiday season expect to pay off their balances in full by January. See summary at ABA.com.
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