The U.S. Census Bureau reported that sales of newly built homes increased (+3.6%) month over month to 698,000 in December from an upwardly revised rate of 674,000. The seasonally adjusted annual rate is up (+6.7%) from a year earlier. Seasonally adjusted, home sales increased in the Northeast (+41.7%) and West (+20.3%) and dropped in the South (-2.1%) and Midwest (-3.3%). The estimated sales for 2024 showed a total of 683,000 new homes sold, up (+2.5%) from the previous year. The average sale price for a new home jumped to $513,600 from a slightly revised $485,000 the previous month. The median new home sale price increased from a slightly revised $402,500 in November to $427,000. There were a seasonally adjusted 494,000 new homes for sale as of the end of December. The supply of new homes for sale decreased to an 8.5-months as compared to a downwardly revised 8.7 months the previous month.

The U.S. Census Bureau reported that new orders for manufactured durable goods fell (-2.2%) to a seasonally adjusted $276.1 billion in December. This marks the fourth decline in five months and follows a downwardly revised (-2.0%) reading the previous month. A primary contributor to the decrease was transportation equipment (-7.4%), as commercial aircraft dropped (-45.7%). Excluding transportation, new orders were up (+0.3%) month over month. On a year over year basis, new orders for manufactured durable goods shrank (-1.5%). Core capital goods orders, which exclude the volatile aircraft and defense orders, increased (+0.5%) following an upwardly revised (+0.9%) in November, increasing (+0.6%) year on year. Shipments increased (+0.9%) to $287.3B, following four consecutive monthly decreases; this was largely driven by a (+20.7%) increase in commercial aircraft. Shipments are up (+1.8%) year over year. Core capital goods shipments increased (+0.6%) after a downwardly (+0.4%) reading for November, increasing (+0.4%) year on year.

The Federal Open Market Committee (FOMC) announced that it will maintain the federal funds rate within a range of 4.25% to 4.50%, this follows three consecutive reductions totaling a full percentage point. The FOMC statement showed optimism regarding the labor market as compared to December, stating, “The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” An important reference from the December statement that inflation “has made progress toward” was replaced with “Inflation remains somewhat elevated.” Powell in his FOMC Press conference was pushed about the state of the labor market, responding, “It is a low hiring environment; if you have a job, all is good, but if you have to find a job, the job-finding rates and job-hiring rates have come down.” Powell asserted that the labor market was stable and broadly in balance.