More Traffic of Prospective Buyers

Last Edited by: LPL Research

Last Updated: November 21, 2024

econ market minute graphic

Jeffrey Roach:

Hi, I'm Jeffrey Roach, Chief Economist for LPL Financial, with an update on what's happening in the macro landscape and a call to action for investors. First, improved supply chains should soften inflation. So the Fed's preferred inflation metric has steadily declined for the past few years. We don't see a material change in this trajectory, and one encouraging sign here is that global supply chains are working very well. And according to the New York Fed, these global trade networks between the Euro area and Asia, including China and Japan, the U.K. and the U.S., currently are operating with below-average backlogs. Second, residential construction trending lower. Here's some key items from the latest housing data. Major storms likely stalled the beginnings of some residential projects, causing a decline in construction in the southeast. Now, both housing starts and building permits declined in October, as several home builders appeared to hold back the start of new projects until after the election.

Jeffrey Roach:

This is a lot like what we've heard with business spending plans. The bottom line is this. Residential construction continues to trend a bit softer, being weighed down by high mortgage rates in a softer job market. However, builders reported a recent uptick in traffic of prospective buyers, bolstering the near-term outlook for housing demand in the next six months. Third, home builders have indeed upgraded their 2025 outlook. Interestingly enough, amid elevated mortgage rates, home builders expect the next six months to be a bit better than expected, and they revise their forecast higher because they've seen an increase in perspective buyer traffic as rates seem to be stabilizing, not necessarily falling. Prospective buyers have emerged giving some comfort to those in the residential construction market. Well, that's all for now, and if you want more insights on global market trends, follow us on social media and take care.

 

Dr. Jeffrey Roach, Chief Economist for LPL Financial, explains how supply chains will help domestic businesses and why the residential market outlook improved.

Tune In Now

You can find Econ Market Minute on the LPL Research YouTube channel and Apple Podcasts.

 

You may also be interested in:

Keep Up With Market Insights

LPL Research brings the market directly to you with a publication lineup that moves as quickly as the market. Drill down into the details with daily and weekly commentary.

Stay in the Know

Weekly Market Commentary

Get your weekly recap of the stock market, the Fed and everything else in between, in this weekly publication — an LPL fav. Learn what the research team has to say.

Get Your Weekly Recap

Macro. Market. Movers.

Read the hottest topics of the day from LPL Research’s thought leaders. From stocks and bonds, the latest data from the government, and everything else.

Visit the LPL Research Blog

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Stock investing includes risks, including fluctuating prices and loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

High yield/junk bonds (grade BB or below) are not investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the performance of 500 large companies listed on stock exchanges in the United States.

The Bloomberg U.S. Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States.

All index data is from FactSet or Bloomberg.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 

Not Insured by FDIC/NCUA or Any Other Government Agency

Not Bank/Credit Union Guaranteed

Not Bank/Credit Union Deposits or Obligations

May Lose Value

 

RES-0002175-1024W | For Public Use | Tracking #661768 (Exp. 11/25)