Housing Recovery Back on Track |
Key reports indicate that the housing recovery is back on track, while inflation remains tame. The recent stall in recovery may be coming to an end. Housing starts and Building Permits are on the rise. Tame consumer inflation means good news for Bonds. All in all, now is a great time to consider a home purchase or refinance! |
Last Week In Review |
"There is nothing as sweet as a comeback." Anne Lamott. That's certainly true when it comes to the housing sector, as recent reports indicate that the stall in the housing recovery seen late last year and in recent months may be over.
Housing Starts for July surged by nearly 16 percent to an annual rate of 1.093 million, above expectations and up from the 945,000 in June. Building Permits, a sign of future construction, also came in above expectations while Existing Home Sales for July increased by 2.4 percent from June.
In other news, despite signs earlier this summer that inflation may be heating up, the latest reports show that inflation at the consumer level remains tame. This is good news for Bonds, as inflation reduces the value of fixed investments like Bonds. And since home loan rates are tied to Mortgage Bonds, tame inflation is typically good news for home loan rates as well. |
Economic Calendar for the Week of August 25 - August 29
Date |
ET |
Economic Report |
For |
Estimate |
Prior |
Impact |
Mo. Aug 25 |
10:00 |
New Home Sales |
Jul |
NA |
406K |
Moderate |
Tu. Aug 26 |
8:30 |
Durable Goods Orders |
Jul |
NA |
1.7% |
Moderate |
Tu. Aug 26 |
9:00 |
S&P/Case-Shiller Home Price Index |
Jun |
NA |
9.3% |
Moderate |
Tu. Aug 26 |
10:00 |
Consumer Confidence |
Aug |
NA |
90.9 |
Moderate |
Th. Aug 28 |
8:30 |
Jobless Claims (Initial) |
8/23 |
NA |
289K |
Moderate |
Th. Aug 28 |
8:30 |
Gross Domestic Product (GDP) |
Q2 |
NA |
4.0% |
Moderate |
Th. Aug 28 |
8:30 |
GDP Chain Deflator |
Q2 |
NA |
-2.0% |
Moderate |
Th. Aug 28 |
10:00 |
Pending Home Sales |
Jul |
NA |
-1.1% |
Moderate |
Fri. Aug 29 |
8:30 |
Personal IncomeJul |
Jul |
NA |
0.4% |
Moderate |
Fri. Aug 29 |
8:30 |
Personal Spending |
Jul |
NA |
0.4% |
Moderate |
Fri. Aug 29 |
8:30 |
Personal Consumption Expenditures and |
Jul |
NA |
0.1% |
HIGH |
Fri. Aug 29 |
8:30 |
Personal Consumption Expenditures and Core PCE |
YOY |
NA |
1.5% |
HIGH |
Fri. Aug 29 |
9:45 |
Chicago PMI |
Aug |
NA |
52.6 |
Moderate |
Fri. Aug 29 |
10:00 |
Consumer Sentiment Index (UoM) |
Aug |
NA |
79.2 |
Moderate |
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