Yesterday was a great day for the real estate market, for interest rates it was an awful day as rates jumped higher in one day than in some time. However, it was a day full of good news that we have been waiting a long time for.
The private payroll data report from ADP was almost twice what was expected for job creation.
ISM (Institute for Supply Management) data which tracks national manufacturing growth reached levels that we have not seen for years. As one commentator put it "manufacturers do not make stuff unless they have a buyer for it" so this is good news, consumers and business may be loosening up a little.
The third piece of good news is that the Fed's Beige Book was released and it showed strength in consumer spending and manufacturing. It was a prettier scenario than last month for sure.
All of these will show and will create more consumer confidence. If a prospective homeowner is confident that they will not lose their job, and with real estate prices and interest rates at all time lows they will be buying again.
Sure there are a lot of people in this country just hanging on, but there are lots of people out there that want to buy a home. For the first time in years the economic numbers are giving them a reason to.