Existing home sales hit 14-year low

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September's existing home sales report released Wednesday showed sales dropped to 3.84 million units, falling short of the 3.88 million estimated and marking a 14-year low. EY senior economist Lydia Boussour and Charles Schwab chief global investment strategist Jeffrey Kleintop join Catalysts to discuss the broader economic implications. Boussour emphasizes that the report indicates ongoing downward pressure from higher interest rates on the housing market. She notes that US housing affordability remains "depressed" and is hovering around its lowest levels since the 1980s, characterizing the current housing market as "frozen." Looking ahead to the Federal Reserve's potential easing cycle, Boussour projects optimism: "As we move into 2025, we do expect to see some of that pressure easing on the housing market, so we do expect to see a gradual recovery." She adds that the broader economy continues to move at a "solid pace." Addressing the ongoing impact of rates on markets, Kleintop points to currently high market valuations, noting that sustained elevated rates put downward pressure on these valuations. He cautions that this environment, combined with slowing economic growth, could "see a beginning of a downtrend in earnings growth" and lead to moderating stock market gains. #youtube #news #stockmarket About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more info

Published 2024-10-23 · Watch on YouTube ↗
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