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Housing Construction Rebound Is Ongoing

The headline from the Commerce Department report on new home sales this morning was that August delivered a 7.9% increase over July. The Commerce Department numbers for August surprised analysts just like the existing home sales data last week because it seems that many folks have bought into the idea that rising interest rates are choking off the nascent housing recovery.

Once again I stand by the opinion that no conclusive data exist that show we are seeing sales decline. The only declines we are seeing consistently are typical seasonal declines in activity.

Our more detailed insights into new home community sales and traffic support that opinion. Traffic across new subdivisions continued to stay above levels seen over the same season in the prior year, according to the Metrostudy traffic and contract survey covering new subdivisions.

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