12/13: MetroIntelligence Economic Update by P. DUFFY

November new home mortgage applications fell 17 percent from October but rose 27 percent year-on-year

The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for November 2019 shows mortgage applications for new home purchases fell by 17 percent from October, but increased 27.1 percent compared from a year ago.



Federal Reserve opts to keep interest rates unchanged in December meeting

The Committee decided to maintain the target range for the federal funds rate at 1.50 to 1.75 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2.0 percent objective.



Producer Price Index unchanged in November, up 1.1 percent year-on-year

The Producer Price Index for final demand was unchanged in November but rose 1.1 percent for the 12 months ended in November. The index for final demand less foods, energy, and trade services was unchanged in November and rose 1.3 percent year-on-year, for the smallest annual advance since September 2016.