U.S. consumer spending dropped more than expected in May, driven by lower gas purchases as households tighten budgets. New-home construction fell 9.8% to a five-year low, and homebuilders started offering price discounts in June. The Fed held rates steady but most members expect two cuts in 2025.
A quick market insights. In June, more homebuilders started offering price discounts, another sign that their confidence is falling. New home construction dropped 9.8% in May, hitting a 5-year low due to lower demand. Mortgage purchase applications also fell 3% in a week, though they're still up 14% compared to last year. Consumer spending dropped more than expected in May, especially on gas, as people spent less because of economic uncertainty. The Federal Reserve kept interest rates the same this week but is still worried about inflation and slow growth. Most Fed members expect 2 rate cuts in 2025, and investors are hopeful for a cut as early as September. Found this helpful? Please like our post and tag a friend. Contact us through our website or message us right here.
