Posted in home improvement loans

August New Home Sales Confirm That The Long Leading Housing Sector Has Been Surging

Introduction

Housing is a long leading indicator for the economy overall; i.e., it typically peaks over a year before the economy does as a whole, and is also usually one of the first sectors to rebound during a recession.

Thursday morning’s report on August new home sales certainly fit that mold.

Near-15-year high in new home sales is strong confirmation that the long leading housing sector has been surging

As I wrote last week, when housing starts and permits were reported, historically, interest rates have led housing sales and starts, which in turn lead prices, which in turn lead inventory.

Here’s the updated look at mortgage interest rates since the beginning of 2011, measured YoY, vs. single-family housing permits (the least volatile metric), also measured YoY:

Thursday morning the Census Bureau reported new home sales for August. There are two important facts about new home sales:

1. They are the

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Posted in home

New-home construction pulls back slightly, as builders shift attention away from the multifamily sector

ECONOMIC REPORT



a tall building in a city: The pace of construction for new multifamily housing units slowed significantly between July and August.


© Getty Images
The pace of construction for new multifamily housing units slowed significantly between July and August.

The numbers: U.S. home builders started construction on homes at a seasonally-adjusted annual rate of 1.42 million in August, representing a 5% decrease from the previous month but a 3% uptick from a year ago, the U.S. Census Bureau reported Thursday.

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Permitting activity occurred at a seasonally-adjusted annual rate of 1.47 million, down 1% from July but roughly even with the pace from August 2019.

Economists polled by MarketWatch had expected housing starts to occur at a pace of 1.52 million and building permits to come in at a pace of 1.55 million.

What happened: The dip in housing starts and building permits was driven by declines in multifamily construction activity. Multifamily starts fell 25% between July and August, while the number of new permits issued for multifamily

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Posted in home remodeling

Sector Watch: Work-from-home stocks look to rebound (NYSEARCA:WFH)

Work-from-home stocks tracked the broader technology selloff into correction territory last week.

The Nasdaq Composite is down 10.7% from its recent high, in what’s considered a correction. The Nasdaq 100 is also down 10.7%. Both fell below their 50-day simple moving averages this week.

“Prudence, rather than conviction about what the future may hold, suggests that a partial rebalance out of QQQ and its richly-valued components is probably a good idea at current levels,” D.M. Martins Research wrote on Seeking Alpha.

The Direxion Work From Home ETF (NYSEARCA:WFH) is down 2.2% in the last five days, but is off 10.7% from its recent September highs.

Cloud communications company Twilio (NYSE:TWLO) is the largest holding, at 4.95% of the ETF. It’s down nearly 4% in the last five days and off more than 20% from the recent closing high hit on Sept. 1. But it’s still up more than 157% in

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Posted in contractions

PIOJ reports negative impact to real sector growth due to COVID-19

As the novel coronavirus pandemic continues to negatively impact the prospects for gross domestic product (GDP) growth, the Planning Institute of Jamaica (PIOJ) in its latest assessment of economic activities reported contractions across all major sectors in the services and goods-producing industries.

In a quarterly briefing on Wednesday last, the country’s chief planning agency said that the economy declined by 18 per cent for the April to June quarter, four percentage points more than it had previously projected, when it estimated a 12-14 per cent decline in its outlook while reporting on the January to March quarter earlier this year.

Director general of the PIOJ, Dr Wayne Henry, said that the out-turn for the April-June quarter was as a result of the implementation of measures to manage the pandemic along with the associated impacts, ranging from border closures, restricted movements, business closures, job losses, weakened demand and reduced economic

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