The National Association of Home Builders came in at 18 versus expectations of 15. This index has been between 13 and 17 for the past 1 year. The index is a survey in which asks respondents about the condition of the housing market. This sharp jump is pretty surprising considering the weakness in the financial markets over the last few months. It might be an early indicator that the housing market may finally be in the early stages of healing. One of the main reason the current recovery has been so weak is because housing hasn’t contributed in this recovery at all. In all the previous recoveries, housing has been one of the biggest contributors in the early stages of the recovery. Housing stocks are rallying strongly on this data. Hopefully this data is not an anomaly and instead of a headwind we will finally get a small tail wind from housing.
I have been busy with some other work so haven’t been able to post frequently. Hopefully I will get back to posting about 2-3 times per week.