Existing Home Sales Fall Third Straight Month

Monthly sales of existing homes fell for the third straight month and came in below expectations, signaling a further cooling in the housing market. Weekly jobless claims fell during the week of February 16; however, the four-week moving average rose by 4,000 claims, suggesting a potential shift in long-term labor market trends. Lastly, durable goods orders were up in December on the back of a surge in commercial aircraft orders. However, when adjusting for defense and aircraft orders, durable goods orders fell 0.7% in the month.

• Monthly existing home sales fell for the third time in the last three months, a sign that the housing market has continued to cool into the new year. Sales fell 1.2% in January and 8.5% from January 2018 to a seasonally adjusted 4.94 million homes, short of economist expectations of 5.02 million. 

• U.S. weekly jobless claims fell during the week of February 16, dropping 23,000 claims to 216,000 for the week. The drop outpaced expectations, as economists polled by Reuters predicted claims dropping to only 229,000. However, the four-week moving average, a measure that can smooths the week-to-week volatility, rose 4,000 claims to 235,750, the highest level in just over a year.

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• Durable goods orders in the U.S. were up 1.2% in December, the strongest gain in four months on the back of a 28.4% surge in orders for commercial aircraft. However, the index for non-defense capital goods excluding aircraft fell 0.7% after a 1% drop in November, signaling a pullback in business investment spending. Durable goods orders have been weak since August. 

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