New home sales in April declined from the previous month and from a year ago after elevated home prices and rising mortgage rates kept buyers away, despite rising home inventories.
Existing home sales in April declined, and the median home price rose to a record high for the month of April as home prices rose in all regions. Record-high home prices and elevated mortgage rates are keeping buyers away, despite the rise in home supply.
Building permits declined, but housing starts and completions increased in April. Building permits dropped to a 4-month low as home buyers struggled with elevated home prices and rising mortgage rates.
Shelter and gasoline inflation contributed seventy percent of the price increase in the month. Core inflation slowed to a three-year low, but prices are still rising faster than the Fed's target rate of 2%.
Producer price inflation, a measure of wholesale price inflation, rebounded in April after falling the previous month, largely because of the rise in service prices.
The U.S. economy added jobs at a slower pace in April, and job additions in February and March were lowered by 22,000. Wages increased at an annual pace of 3.9%. Both the unemployment rate, at 3.9%, and the number of unemployed people, at 6.5 million, changed little in April.
The international goods and services trade deficit held steady near a 10-month high in March. The trade deficit rose with China and the European Union but eased with Mexico.
The U.S. economy slowed in the first quarter after consumer spending and nonresidential fixed investment rose at a slower pace, private inventory investment decreased, and a wider trade deficit negatively impacted the growth.
U.S. residential housing market construction activities slowed in March amid rising mortgage rates, elevated home prices, and buyers facing affordability issues.
Total retail sales in March rose after consumers continued to spend at retail and food service establishments. The increase in consumer spending was supported by a resilient labor market and rising wages.
The producer price index in March rose at the slowest pace in three months on a monthly basis, and annual inflation rose at the fastest pace since April 2023.
