The Fed announced at this week’s meeting that there would be no policy rate hike this month. They did however signal a December hike is very likely. Markets have been rallying on the probable nomination of Jerome Powell as the next Fed Chair. Powell is expected to continue the trend of current Fed policies. The tax reform proposals issued by the House GOP have sparked a stock rally. A proposed cut to corporate taxes is expected to fuel the economy.
Home prices hit a new all-time high in August, according to Case-Shiller. National home prices rose 6.1% annually, better than the 5.8% economists expected. Construction spending increased 2.0% year-over-year in September. Month-over-month spending fell for non-residential construction and was unchanged for residential construction. Despite tight inventory and rising home prices, the homeownership rate rose in the 3rd quarter. The 63.9% rate is the highest level since 2014.