Consumer prices edged up only 0.2% in April, slightly lower than the 0.3% rise that economists anticipated, the Labor Department reported May 14. Core inflation, which excludes food and energy prices, increased just 0.1%, also lower than analysts’ 0.2% forecast. Helping keep a lid on inflation was the price of hotel rooms, which fell by 1.9% in April, the third straight monthly decline reflecting cutbacks in business and vacation travel.
Housing posted a surprising rebound in April as the pace of new-home construction rose 8.2%, the biggest monthly increase in more than two years, the Commerce Department said May 16. Most growth came from a 36% jump in apartment construction.
The housing market was further buoyed by Fannie Mae’s announcement on May 16 that it was eliminating higher minimum down payment requirements for borrowers in distressed real estate markets. The government-sponsored enterprise said it will require minimum down payments of between 3% and 5% for all loans it guarantees. The change replaces a December policy that required a higher minimum if the loan was for a home in a declining real estate market.
Fannie’s reversal is much needed because the number of U.S. homes facing foreclosure in April shot up 65% versus the same month a year ago, and 4% since March, RealtyTrac said May 14. One in every 519 U.S. households received a foreclosure notice in April.
The slowing economy contributed to the lowest level of consumer confidence in 28 years, according to the Reuters/University of Michigan consumer sentiment index, which has been tracking consumer confidence in the economy for more than half a century. The preliminary index fell to 59.5 in May from 62.6 in April. A reading above 100 indicates strong consumer confidence.
Economic news due out this week includes the Conference Board’s Leading Economic Indicators report on May 19 and the existing home sales update on May 23.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
Housing posted a surprising rebound in April as the pace of new-home construction rose 8.2%, the biggest monthly increase in more than two years, the Commerce Department said May 16. Most growth came from a 36% jump in apartment construction.
The housing market was further buoyed by Fannie Mae’s announcement on May 16 that it was eliminating higher minimum down payment requirements for borrowers in distressed real estate markets. The government-sponsored enterprise said it will require minimum down payments of between 3% and 5% for all loans it guarantees. The change replaces a December policy that required a higher minimum if the loan was for a home in a declining real estate market.
Fannie’s reversal is much needed because the number of U.S. homes facing foreclosure in April shot up 65% versus the same month a year ago, and 4% since March, RealtyTrac said May 14. One in every 519 U.S. households received a foreclosure notice in April.
The slowing economy contributed to the lowest level of consumer confidence in 28 years, according to the Reuters/University of Michigan consumer sentiment index, which has been tracking consumer confidence in the economy for more than half a century. The preliminary index fell to 59.5 in May from 62.6 in April. A reading above 100 indicates strong consumer confidence.
Economic news due out this week includes the Conference Board’s Leading Economic Indicators report on May 19 and the existing home sales update on May 23.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
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