When I first saw that new home sales increased, I naturally thought that a post-hurricane bump occurred. But the increase was far broader:
The South region — which includes Texas and Florida — did increase; it rose 1.3%. But notice the incredibly large increases in the NE — which rose 30.2% — and the Midwest — which was up 17.9%.
The top chart shows the NE region, which has increased 2 consecutive months and currently stands at a 5-year high. The Midwest number is still within recently reported numbers.
While homes are expensive, mortgage rates are still fairly low:
This was a very encouraging report.
Article Categories:Financial Economics Blogs