11:19 a.m. ET, January 22, 2019
Existing home sales tumble 6.4% in December
From CNN Business' David Goldman
One economic report does not a trend make, but December's home sales were seriously ugly.
Sales of existing homes fell by 6.4% last month, according to the National Association of Realtors. That marks the weakest performance since November 2015. Home sales had edged lower throughout most of 2018 — but nothing close to the drama of December's decline. Existing home sales fell 10.3% for the year.
The Fed has been closely watching the housing market for signs of deterioration as it weighs its next move. It could continue raising rates to fight inflation or slow its rate-hike campaign to avoid stalling an economic growth period apparently on its last legs.
Economists were hopeful that home sales were on the rebound after consecutive increases in October and November.
Although winter weather could be a factor in last month's decline, so are rising home prices and relatively stagnant growth in paychecks.
Declining consumer confidence, concerns about the economy and market volatility also probably factored in.
"It looks like home buyers have been priced out of the market," said Chris Rupkey, chief financial economist at MUFG. "You don’t buy the biggest big-ticket purchase of your life when the markets are plummeting and scaring the daylights out of consumers."