By Fred Arnold
Two stronger than expected reports on housing released today are the driving force behind the 300+ point stock market rally happening right now.
The first report on New Home Building shows an increase of 9.3% from the month of October and up a whopping increase of 24.3% from the same time a year ago.
In addition, permits for new construction are also higher. Permits rose 5.7% from October and they are 20.9% higher than one year ago.
It is premature to determine if this is the beginning of a housing rebound, however undoubtedly, the very low interests may be a catalyst seen by builders to jump back into constructing new homes. Tomorrow be prepared for the NAR's revision of existing home sales reports for the last 5 years. Nobody outside of NAR knows how much the revisions will be, however...one thing is for sure, the numbers will be revised lower.
As soon as the news is available and market reaction can be assessed, I will send you out another mid-week update.
To Your Success,