The Fed raised rates by 0.25% but markets expect a cut by July. Unemployment claims fell for a second week, showing a tight labor market. Existing home sales jumped 14.5% in February, the strongest since July 2020, while the median home price fell to $363,000, the first annual decline in over a decade.
Markets in a Minute. The Fed raised rates by 0.25% this week, calling for more hikes to come. Despite this, markets anticipate the Fed will have to cut rates by July. Unemployment applications unexpectedly declined for second week. The job market remains tight with employers reluctant to lay off workers. Short-term inflation expectations fell in March to the lowest level in 2 years, but consumer sentiment still fell due to persistently high prices. Existing home sales rose 14.5% in February for the first monthly gain in 12 months and the largest increase since July 2020. The median price of an existing home sold in February was $363,000. This was 0.2% annual decline and the first drop in over a decade. Purchase mortgage applications increased 2% last week as the average contract interest rate fell. Refi apps increased 5%. Thanks for watching. The last word.
