Daily News 2/24/2015
February 24, 2015
Tuesday – February 24
Home prices across the nation and in 20-select cities rose in December, but are well below the lofty price gains seen in 2013 and early 2014. The S&P Case Shiller 20-city Home Price Index was up 4.5% from December 2013 to December 2014, while month-over-month prices were up 0.9%. The 4.5% was just above the 4.3% expected. Economists are saying that moderate prices gains bode well for home owners, while big gains make homes unaffordable for consumers, due to a stall in wage growth.
Consumer Confidence in February eased from the lofty levels seen in January to 96.4 from the 103.8 recorded last month, reported the Conference Board. “After a large gain in January, Consumer Confidence retreated in February, but still remains at prerecession levels,” said Lynn Franco, director of economic indicators at the board. Within the report it showed that 20.5% of consumers feel that jobs are plentiful, while 15.1% of households think that their incomes will rise in the next six months, both below prior levels.
Fed Chair Janet Yellen is testifying on Capitol Hill today in her semi-annual meeting with Congress. Ms. Yellen is in front of the Senate Banking Committee today saying that due to both an improving economy and job market, interest rates could start to move higher later in 2015. The rise in rates still depends on a continuing improving economy, and will increase the benchmark Fed Funds Rate on a meeting-by-meeting basis. On the inflation front, Ms. Yellen said that it continues to run below the Fed’s target rate of 2% and the members will be closely watching those levels.
