U.S. Economic News
December 27, 2017
U.S. Economic Indicators
The National Association of Realtors pending home sales index inched up 0.2% in November (up 0.8% Y/Y). NAR says that the housing market is finishing the year on a strong note, though many first-time buyers continue to face issues of affordability and shrinking supply. NAR Report
The Conference Board’s Consumer Confidence Index fell from 128.6 to 122.1 in December, the largest contraction in over two years. The drop was driven by a sharp decline in the Expectations index from 111.0 to 99.1. Conference Board Report
U.S. News
The Wall Street Journal reports that homeowners are rushing to prepay property taxes for 2018 before they lose the ability to deduct those payments from their tax bills. The recently-passed tax bill will cap the amount that filers can deduct for property taxes at $10,000, which could raise the tax bills of individuals living in higher-tax areas. WSJ
According to Jon Sindreu of The Wall Street Journal there is a risk that long-term interest rates could suddenly rise as central banks tighten monetary policy. Long-term rates have been subdued despite repeated rate hikes by the Fed, and a sudden spike in yields as the Fed continues to tighten could slow down or reverse recent gains in stock markets. WSJ