Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: GDP Stable, Existing Home Sales Drop

The latest measure of strength in the overall U.S. economy shows it maintained its momentum in the third quarter of the year. A separate report shows a big decline in existing home sales for the second straight month.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
December 22, 2015
Economic Watch: GDP Stable, Existing Home Sales Drop

 

2 min to read


The latest measure of strength in the overall U.S. economy shows it maintained its momentum in the third quarter of the year. A separate report shows a big decline in existing home sales for the second straight month.

Ad Loading...

According to the U.S. Commerce Department on Tuesday, the nation’s gross domestic product expanded at an annual rate of 2% in August through October period, down just slightly from the 2.1% pace the department reported a month earlier.

Ad Loading...

This was due to business inventories accumulating a little less than previously estimated, following huge spikes earlier in the year. Consumer spending remained unchanged, increasing 3%, while growth in spending on business equipment rose 9.9% rather than the earlier reported 9.5% hike.

“This strength in domestic spending was sufficient to prompt the U.S. Federal Reserve to start raising fed funds [rate] at the Dec. 16 Federal Open Market Committee [meeting] with the range increased 25 basis points to 0.25% to 0.50%,” says Paul Ferley, assistant chief economist at RBC Economics. “We expect this strength in domestic spending growth will persist, resulting in the fed funds range rising a further 100 basis points (1%) over the course of 2016.”

In the meantime, a report from the National Association of Realtors shows existing-home sales dropped off considerably in November to the slowest pace in 19 months.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 10.5% to a seasonally adjusted annual rate of 4.76 million in November, from a downwardly revised 5.32 million in October. That's the lowest since April 2014's 4.75 million home sales.

Sales are 3.8% below a year ago. the first year-over-year decrease since September 2014.

Ad Loading...

Lawrence Yun, NAR chief economist, says multiple factors led to November's sales decline. The primary reason, however, could be an anomaly as the industry adjusts to the new “Know Before You Owe” rule, a federal initiative that simplifies paperwork for homebuyers.

"Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," he said. "However, signed contracts have remained mostly steady in recent months, and properties sold faster in November. Therefore it's highly possible the stark sales decline wasn't because of sudden, withering demand."

According to Yun, although Realtors are adjusting to the Know Before You Owe initiative, the main takeaway so far has been the need for longer closing times.

"It's possible the longer timeframes pushed a latter portion of would-be November transactions into December," says Yun. "As long as closing timeframes don't rise even further, it's likely more sales will register to this month's total, and November's large dip will be more of an outlier."

 

More Fleet Management

Trucker Path, Truckstop.com partnership expands.
Fleet Managementby News/Media ReleaseApril 14, 2026

Trucker Path, Truckstop.com Expand Load Access Partnership

An expanded Trucker Path and Truckstop.com integration brings more freight opportunities into the TruckLoads app while emphasizing security and network quality.

Read More →
DAT TVI March 2026.
Fleet Managementby News/Media ReleaseApril 14, 2026

Truckload Rates Hit Two-Year Highs as Diesel Costs Surge, DAT Says

Strong March freight demand combined with a spike in fuel costs pushed both spot and contract truckload rates to their highest levels in more than two years.

Read More →
Cloud computing concept background with human and robot hands concept
Fleet ManagementApril 14, 2026

The AI Conversation You Need to Have with Your TMS Provider

Everyone’s talking about AI — but is your transportation management system actually built for it?

Read More →
Ad Loading...
Sharp Transportation tractor-trailer
Fleet Managementby News/Media ReleaseApril 14, 2026

Kriska Buys Fellow Canadian Carrier Sharp Transportation Systems

Being part of KTG will allow Sharp to expand and improve its services.

Read More →
Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
Ad Loading...
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →
Fleet Managementby StaffApril 8, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →
Peter Voorhoeve, president, Volvo Trucks North America.
Fleet Managementby Jack RobertsApril 6, 2026

Volvo’s Quiet Confidence Turns into a Full-Throated Bet on the Future

After years of steady, methodical progress, Peter Voorhoeve says the OEM’s latest lineup isn’t just evolutionary. It’s delivering real, measurable gains for fleets right now.

Read More →
Ad Loading...
Beyond Trucks Rate Agent TMS.
Fleet Managementby Jack RobertsApril 2, 2026

BeyondTrucks Targets Rate Complexity with New AI RateAgents

BeyondTrucks says its new RateAgents can turn plain-language rate logic into working code, starting with fuel surcharges — a critical but notoriously complex piece of carrier revenue.

Read More →