February’s flash Purchasing Managers’ Manufacturing Index (PMI) missed expectations at 54.3, indicating slowing but still solid growth, and in line with predictions for 2017 Q1 GDP growth at 2.5%. Survey data also indicated a dip in business optimism to its lowest level since September 2016 and a drop in new business growth to a five month low. Domestic demand was the primary source for new orders, with Producers blaming a strong dollar for relatively flat export growth.

The National Association of Realtors Existing Home Sales report for January exceeded expectations, with a 3.3% increase bringing sales to 5.690 Million, for the strongest month since February 2007. The median home price has been increasing for 59 consecutive months, and January’s 7.1% increase brought the price to $228,900. Existing home inventory rose 2.4% to 1.69 Million, but declined 7.1% Y/Y and existing inventory remains unchanged from December’s 3.6 month supply.

The Census Bureau’s January Monthly New Residential Sales report showed 555,000 sales, for a 3.7% M/M and 5.5% Y/Y increase. Sales did not meet the consensus estimate of 576,000, and both December and November figures were revised downwards, by 1,000 and 23,000 respectively. New home inventory rose to 5.7 months from 2016’s average of 5.2 months, and the increasing inventory helped drop the median sales price 1% M/M to $312,900, although prices still rose 7.5% Y/Y.