Consumer Confidence Rebounds While Housing Data Shows Uneven Momentum — Evening Brief – 10.27.26

Americans felt better about the economy in October as gasoline prices eased, but Tuesday’s data showed the relief has yet to reach the housing market. New home sales edged lower, inventory stayed high, and home price gains continued to trail inflation, a sign that persistent price pressures and elevated borrowing costs are still squeezing household budgets.

The Conference Board’s consumer confidence index rose to 91.7 from a revised 84.2 in September, far above forecasts of 80.4. The present situation index climbed 8.6 points to 120.4, and the expectations index rose 6.9 points to 72.6, partly reversing three straight monthly declines.

The rebound tracked easing gasoline prices, said Fergus McCormick, senior economist at the Conference Board, though confidence remains on a long-term downward trend. Consumers plan to spend less on services and durable goods over the next six months. Year-ahead inflation expectations eased but remained elevated at 5.8%.

New home sales fell 0.6% in September to an annual rate of 676,000, though that beat forecasts of 615,000. Sales were down 5.3% from a year earlier. The 476,000 homes for sale represent an 8.4-month supply. The median price rose 3.9% from August to $400,400 but was below the year-earlier $416,800.

The S&P Cotality Case-Shiller 20-city index rose 0.3% in August on a seasonally adjusted basis and 2.7% from a year earlier, still below inflation running above 3%. Home prices have now declined in real terms for 15 straight months, said Rebecca Kaufman of S&P Dow Jones Indices.

Chicago led with a 6.7% annual gain, followed by New York at 6.2% and Cleveland at 4.3%. Western markets lagged, with prices down in Seattle, Las Vegas and Denver.