The housing sector continues to see higher home prices due in part to heavy demand and low inventories. Fannie Mae reports that its Home Purchase Sentiment Index (HPSI) was essentially unchanged in August at 75.7. Three of the components were lower while three were higher. Consumers were slightly more optimistic about homebuying conditions for first time since March. The increase in optimism was driven partly by signs of moderation in home price expectations and continued low mortgage rates. “The HPSI remained relatively flat this month, suggesting to us that the continued strength of demand for housing and favorable home-selling conditions may be offsetting broader concerns about the Delta variant and inflation that have negatively impacted other consumer confidence indices,” said Mark Palim, Fannie Mae Vice President and Deputy Chief Economist.
After the weak read on August job growth was reported last Friday, U.S. stocks are lower today as the holiday shortened week kicks off. The Dow, S&P and NASDAQ recently closed at all-time highs led by strong earnings and the big surge in the tech sector. A healthy pullback or correction wouldn't be out of the ordinary right now given the frothy levels. Or do stock prices just continue to grind higher on the notion the Fed will continue their expansionary policies. Time will tell.
Housing sector holds steady. Homebuying optimism increases. U.S. stocks lower to start the week.
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