Housing data came in well below expectations this week. Housing starts fell 5.2% when markets expected an increase, and pending home sales dropped 7.3% to a record low. Megan Horneman, CIO of Verdence Capital Advisors, breaks down the numbers and what is driving the slowdown in the housing market. Mortgage rates ended September at 7.3%, the highest in three years, and home builders are dealing with rising material costs and uncertainty from tariffs and supply disruptions. Housing is a small slice of GDP, but a slowdown can ripple into spending on things like furniture and electronics. Stocks rallied anyway, helped by lower oil prices and falling interest rates. In this episode, Megan covers: • Why housing starts fell 5.2% for a third straight monthly decline near 5% • How multifamily construction led the weakness while single-family starts also slipped • Pending home sales falling 7.3% to a record low, led by the West and South • Builder confidence hitting a record low as buyer traffic dries up • How 7.3% mortgage rates and rising material costs are weighing on builders • Why the Dow rallied on weak data and what it may mean for the Fed in October and December If you're keeping an eye on your retirement accounts and wondering how a cooling housing market fits into the bigger picture, this short episode lays it out clearly. Listen in and subscribe so you don't miss next week's update. For a history of all Markets with Megan episodes, visit: https://marketswithmegan.fm #MarketsWithMegan #HousingMarket #HousingStarts #PendingHomeSales #MortgageRates #RealEstateNews #StockMarket #FederalReserve #EconomicData #Investing https://youtu.be/DMmt5C32kMU Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the c...
