New home sales put in huge back-to-back percentage gains, the most in nearly three decades, and steamrolling expectations according to Mortgage News Daily.

New Home Sales by Region

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For whatever reason there was a 30.2% suge in the Northeast and a 17.9% surge in the Midwest according to the Census Bureau report on New Residential Construction.

Bond Market Reaction

I like to watch the bond market reaction following economic reports.

Curiously, 10-year and 5-year yields are down 1 basis point, the rest are flat. I view this as no overall reaction.


If the expectation was a jump in inflation or a strengthening of the economy, yield at the long end should have jumped.

Rate Hikes

A reader asked "why would the Fed stop hiking?" That's easy.

  1. Recession
  2. Sustained stock market decline

I expect both.

For further interest rate discussion, please see What Will the Yield Curve Look Like if the Fed Hikes in Dec and March?

Also consider What Spot in the Yield Curve is Likely to Invert First?

Mike "Mish" Shedlock

New Home Sales Highest in 12 Years

Sales jumped to the highest level since October 2007.

New Home Sales Spike Most in 25 Years: What's Going On?

New home sales rose a whopping 17.5%, the strongest gain since 1992 and the most homes sold in one month since 2007.

New Home Sales Surge Most in 28 Years on Percentage Basis

New home sales for September blew out top end expectations and then some, rising 18.9 percent, the largest percentage gain in 28 years.

Existing Home Sales Rise to the Highest Level Since 2006

Total home sales in 2020 were the most since the housing bubble that preceded the great recession.

New Home Sales Sink 1.7% to 627,000 Units: Builder Spec Homes Most Since 2009

New home sales in July were 627,000 units SAAR. Economists expected a rebound in new home sales to 649,000 from 631,000.

New Home Sales Badly Miss Expectations

New home sales rose 1.3% in November but only because of huge downward revisions.

New Home Sales Near Post Crisis High

New homes sales rose at a seasonally-adjusted annualized rate(SAAR) of 621,000 in March vs. an Econoday expectation of 588,000.

Existing Home Sales Unexpectedly Decline

Existing homes sales fell 0.4% in April. The Consensus expected a rise.

December New Home Sales Jump 3.7% From Huge Negative Revisions

New home sales rose a seemingly solid 3.7% to 621K but the reason is suspect: Strong negative revisions in Oct and Nov.