Inflation began the year hotter than anticipated, while Fed Chair Jerome Powell emphasized that the Fed is not “in a hurry” to implement further rate cuts.

Labor sector reports indicated a mix of strengths and weaknesses, while annual home appreciation continues to show solid performance nationwide.

The Fed held rates steady, inflation aligned with projections, and low existing home inventory boosted signed contracts for new homes.

December’s Existing Home Sales hit their highest level since February, while real-time rental data could bode well for future inflation readings.

Favorable inflation data contributed to a rally in the bond market, while new construction in December was driven by a surge in multifamily projects.

Despite December’s strong headline job gains, which were well above forecasts, there are signs of weakness elsewhere in the labor sector. Home prices also continue to appreciate on an annual basis.

There were updates on Pending Home Sales, home price appreciation and unemployment claims during an otherwise quiet week where the markets were closed on Wednesday for New Year’s Day.

Data on new home sales and jobless claims highlighted a quiet week where the markets were closed on Wednesday for Christmas.

The Fed cut rates, though they pared back their forecasts for additional cuts next year. Inflation was cooler than forecasted, while existing home sales moved higher and builders feel more optimistic about sales next year.

Consumer and wholesale inflation moved higher in November, while the latest unemployment filings also surprised to the upside.

Despite strong headline job gains reported for November, there are signs of underlying weakness in the labor sector. Meanwhile, home prices continue to appreciate on an annual basis.

There was a full plate of inflation, housing and economic data ahead of the Thanksgiving holiday.