Purchases of new homes jumped in August to a seven-year high as Americans took advantage of historically low mortgage rates. Sales climbed 5.7 percent to a 552,000 annualized pace, exceeding all forecasts of economists surveyed by Bloomberg and the highest since February 2008, from a 522,000 rate in July that was stronger than initially reported, a Commerce Department report showed Thursday in Washington.
Steady job gains and cheaper borrowing costs are bolstering demand for new homes, particularly as the supply of previously owned properties is still scant. Further healing in residential real estate should help underpin the U.S. economy amid weakness from the stronger dollar and slower overseas growth. “Housing has now finally started to participate more strongly” in the expansion, saidDavid Berson, chief economist at Nationwide Insurance in Columbus, Ohio, who projected sales would rise. “It’s quite likely we’ll continue to see the gains going forward.”
This is really the big story of the moment: The full-on comeback in everything related to consumers and households.
Let’s just break it down really fast.
1. New housing starts are shooting straight up … 2. Retail sales growth: Re-accelerating …. 3. The Unemployment Rate: Collapsing (according to the government) …. 4. And the unemployment rate is collapsing according to Gallup …. 5. And car sales are surging …. 6. Revolving Consumer Credit. Back to growth …. 7. Gallup Economic Confidence is the best since May …. 8. Consumer discretionary stocks surging towards all-time highs …. 9. Homebuilder stocks highest since 2007 …. 10. Wal-Mart has finally busted out, and surged past its 2000 high …. 11. Even more impressive: Home Depot! Surging to multi-year highs …. 12. University of Michigan Consumer Confidence hits a 5-year high …. 13. Restaurant owners are saw a recent spike up in their outlook (they’re a great measure of consumer discretionary spending …. 14. Case-Shiller home prices are clearly on the rise.
Reuters: Groundbreaking on new homes surged in September to its fastest pace in more than four years, a sign the housing sector’s budding recovery is gaining traction and supporting the wider economic recovery.
Housing starts increased 15 percent last month to a seasonally adjusted annual rate of 872,000 units, beating even the most optimistic forecasts on Wall Street, Commerce Department data showed on Wednesday.
It was the quickest pace of groundbreaking since July 2008…
Steve Benen: For all the Romney/Ryan efforts to convince Americans the economy is getting worse, reality stubbornly keeps getting in the way…
Groundbreaking on new homes surged in September to its fastest pace in more than four years, a sign the housing sector’s budding recovery is gaining traction and supporting the wider economic recovery…..
…. The unemployment rate is at its best point in four years; consumer confidence is at its best point in five years; the federal budget deficit is at its best point in four years. Just this week, reports on retail sales, industrial production, and new housing construction showed sharp and unexpected improvements.
This probably isn’t what Republicans wanted to hear…..
Msg from The Obama Diary: Genuine bloggers who create their own posts are welcome to use anything from TOD – rebloggers, who only copy others in an attempt to up their traffic, are not. Like the reblogger who treats women like this – explicit – while copying TOD posts on women’s rights. He belongs in the GOP.
President Obama arrives back at the White House, August 29
Thank you Sosena 😉
Washington Post: President Obama used some of his toughest language yet against rival Mitt Romney today, accusing the Republican’s campaign of bragging that “we will not let the truth get in the way.”
Speaking to an outdoor crowd of 7,500 in downtown Charlottesville, Obama said Romney and his campaign have not told the truth in TV ads accusing the president of ending the work requirement in landmark welfare reform legislation that was passed in the 1990s.
“Somebody was challenging one of their ads,” Obama said. “They just they made it up about work and welfare. And every outlet said this was just not true. They were asked about it, and a campaign person said, we won’t have the fact checkers dictate our campaign plan. We will not let the truth get in the way.”
WH: The Federal Government is the largest property owner in the United States. But some 14,000 of its properties sit unused and unneeded, costing taxpayers millions of dollars a year in operating and maintenance expenses. To cut down on this wasteful and inefficient spending, the Obama Administration has taken unprecedented steps to reduce this stock of unused property and is on track to save $3.5 billion by the end of Fiscal Year 2012.