Key Points:
Home prices grew at a 3.2% annualized rate in November according to the seasonally-adjusted FHFA Purchase index; this is the slowest pace of price appreciation since June.
- Home prices continue to be a significant driver of inflation given the relatively heavy weight assigned to housing in inflation indices.
FHFA Purchase Index (Dec. 2022 - Present)
Real GDP growth was estimated at a 2.3% seasonally adjusted annualized rate (SAAR) in Q4’24.
- While growth at this rate would generally be considered robust (the Federal Open Market Committee, which sets monetary policy, estimates the U.S. economy’s growth at 1.8% over the longer-run), this growth looks even stronger when looking through a negative contribution from changes in private inventories – a relatively volatile component.
- Focusing exclusively on personal consumption expenditures and private fixed investment, which account for 87% of GDP, annualized growth was 3.2%.
Real Growth Trends (SAAR)
