US existing home sales tanked to 2-1/2-year low, consumer confidence rebounds

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US existing home sales tanked to 2-1/2-year low, consumer confidence rebounds

On Wednesday, data from Conference Board had unveiled that US Consumer Confidence rose in December, as inflation appeared to be slowing down, however, US labour market still remained as a drag, while US existing home sales tumbled to a nearly 2-1/2-year low, illustrating a nefarious outlook ahead for the US housing market.

In point of fact, latest set of data released on Wednesday had painted a perilous picture for an inflation embattled US economy, as many analysts had claimed after Wednesday’s US housing market data that the US economy has been at the brink of an impending recession.

If truth is to be spoken, the US housing market, which had backed the US economy during a nearly two-year long pandemic-induced restrictions alongside tech giants, appeared to be tearing apart following an aggressive rate-hike cycle from the US Fed, as higher mortgage rates kept the first-time buyers at bay.

On top of that, Wednesday’s existing home sales data came forth just a day after US Commerce Department had unveiled that US housing starts for single-family homes, the most lucrative item in US housing industry, had tumbled to a nearly 2-1/2-year low last month.

US existing home sales fall, consumer confidence gain momentum

According to data from the Conference Board, the industry body’s index for US consumer confidence rose to 108.3 this month compared to a 101.4 scored in November, as household savings are still remained at a record level following a flurry of stimulus before and after the November 2020 US Presidential election.

However, US existing home sales plunged by 7.7 per cent to a seasonally adjusted rate of 4.09 million last month on an annualized basis, data from the National Association of Realtors (NAR) had unleashed in a separate statement on Wednesday.