For Housing, A 'Perfect Month'

September 29, 2019 | Hoya Capital

For Housing, A 'Perfect Month' Uncategorized Sep 29 Written By Political uncertainty weighed on US equity markets last week following the release of a whistleblower complaint alleging wrongdoing by the President. The S&P 500 finished lower for the second week. Trade tensions between the US and China appeared to ratchet-up after reports that the Trump administration is considering restrictions on Chinese companies' access to US capital markets. Lost in the political circus, following a trifecta of strong housing data last week, the streak continued with a blowout New Home Sales report and strong Pending Home Sales data.

In August, New Home Sales surged 18% from last year, the third consecutive month seeing growth above 9%. June's revised data was the strongest rate of sales in 12 years. August's housing data completed the "perfect month" with better-than-expected results on Housing Starts, Building Permits, Homebuilder Sentiment, and New, Existing, and Pending Home Sales. To read the full report, click here to visit Seeking Alpha! Real Estate Weekly Outlook 400 days until Election Day 2020.

Political uncertainty weighed on US equity markets last week following the release of a whistleblower complaint alleging wrongdoing by the President as both sides of the aisle dug into their respective trenches. The S&P 500 ( SPY ) finished lower for the second straight week, declining by 0.6% while the tech-heavy Nasdaq ( QQQ ) finished off by 2.0% as trade tensions between the US and China appeared to ratchet-up after reports that the Trump administration is considering restrictions on Chinese companies' access to US capital markets.

Somewhat lost in the political circus, economic data over the past several weeks has been fairly solid with US housing markets completing the "perfect month" in August, beating expectations on all six of the major housing data points. Helping to boost the more yield-sensitive equity market sectors, the 10-Year Treasury yield resumed its retreat, dipping back below 1.70% after briefly perking ...