3/24: MetroIntelligence Economic Update by P. DUFFY

Federal Reserve announces extensive new measures to support the economy

The coronavirus pandemic is causing tremendous hardship across the United States and around the world. The Federal Reserve’s role is guided by its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. In support of these goals, the Federal Reserve is using its full range of authorities to provide powerful support for the flow of credit to American families and businesses.



Morning Consult Index of Consumer Sentiment continues to decline, down 22.04 percent from start of year

As of Monday morning, the Morning Consult Index of Consumer Sentiment (ICS) was at 91.57, falling 1.2 percent from the day before and 5.3 percent since last Friday. This significant drop in confidence over the weekend compounds the decrease seen last week, which was the worst in the history of Morning Consult’s daily ICS. The U.S. ICS is down 22.04 percent since January 1.



Pre-pandemic existing home sales jumped 6.5 percent in February and 7.2 percent year-on-year

Existing home sales jumped 6.5 percent in February (and up 7.2 percent year-on-year) to 5.77 million units per year, or the highest rate in 13 years. The inventory of homes for sale fell 9.8 percent year-on-year to 1.47 million units, for a very tight supply timeline of 3.1 months. In turn, this low supply pushed the median home price in February up 8.0 percent year-on-year to $270,100.



Pre-pandemic Pending New Home Sales Index rose 3.6 percent in February and 16.4 percent year-on-year

The Pending New Home Sales Index came in at 122.7 for February, representing a 16.4 percent increase from February 2019. On a month-over-month basis, new home sales increased by 3.6 percent between January and February 2020.