Equity Markets Closed Up Last Week
Wall Street closed up last week as investors considered the bevy of executive orders issued by President Donald Trump during his first week in office. Each of the major benchmark indexes ended the week higher, led by the Global Dow and the Dow. Communication services, health care and industrials outperformed among the market sectors, while energy lagged. Ten-year Treasury yields ticked higher. Crude oil prices dropped nearly 4.5%, the largest weekly decline since November. The dollar index extended its decline to a one-month low. Gold reached its highest level since October.
Existing Homes Sales Rose in December
Sales of existing homes rose 2.2% in December, the strongest pace since February 2024. Year over year, sales increased 9.3%. Total inventory sat at a 3.3-month supply at the current sales pace. The median existing home price was $404,400 in December, unchanged from the November figure but 6.0% above the December 2023 estimate. Single-family home sales advanced 1.9% in December and were up 10.1% from a year ago. The median existing single-family home price was $409,300 in December, marginally ahead of the November rate and up 6.1% from December 2023. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of January 23. That’s down from 7.04% one week ago but up from 6.69% one year ago.
Eye on the Week Ahead
The Federal Open Market Committee meets for the first time this year, when the Committee is expected to keep the federal funds rate range at its current 4.25%-4.50%. Investors will be paying particular attention to any indications from the Federal Reserve of future interest rate decreases. An inflation indicator favored by the Fed is the Personal Consumption Expenditures Price Index, which is out this week for December. Also available is the first iteration of gross domestic product for the fourth quarter of 2024.