US AUG.NEW HOME SALES AT 1.011M ANNUAL RATE AS Q3 GDP FORECAST SOARS TO 28.9% QoQ

As I have been saying for a while now, Q3 GDP is rebounding strongly and that is driving new home sales through the roof (coupled with historic low interest rates).

As the supply of new home sales got eaten-up.

The South led the wave with 1) aging population and 2) people escaping high taxes of in northern cities (e.g., New York, Chicago, etc).

Will Powell and The Fed take their foot off the accelerator?

Homebuilder Optimism Hits Record, Fueled by Recovering V-Shape Economic Rebound (And Low Rates)

Want more evidence that the real estate market is experiencing a V-shaped recovery from the Covid epidemic? Look at the rebound in US homebuilder optimism!!

(Bloomberg) — U.S. homebuilder optimism rose to a record in September, with low mortgage rates driving a housing boom that has boosted the pandemic economy.

A gauge of builder sentiment jumped five points from a month earlier to 83, beating estimates and hitting the highest level in 35 years of the survey, according to the National Association of Home Builders/Wells Fargo Market Index. It was 78 last month, which matched the previous record from 1998.

While it is easy to link the V-shaped rebound to lower mortgage rates, mortgage rates were low prior and during the Covid crash.

The more powerful explanation is the anticipation of a V-shape economic recovery.

Economic rebound like a monster! Well, maybe not like Dennis Rodman.