U.S. Economic, Housing and Mortgage Market Outlook

This report provides an analysis of the U.S. economic, housing, and mortgage market conditions as of November 2024. It outlines the recent developments in the U.S. economy, highlighting a robust growth rate of 2.8% for Q3 2024, driven primarily by strong consumption spending. The report notes a moderation in the labor market, with a significant decline in job growth attributed to temporary disruptions. It also discusses the housing market, which is experiencing a shortage of 3.7 million units, and the impact of fluctuating mortgage rates on home sales and construction activities. The report indicates that existing home sales have reached a 14-year low, while new home sales show slight improvement. Additionally, it details the inflationary pressures affecting the economy, with core inflation remaining above the Federal Reserve's target. The outlook suggests potential rate cuts by the Federal Reserve and a gradual decline in mortgage rates in 2025, which may improve housing market conditions and increase inventory.