Core Insights - New home sales in the US increased significantly by 20.5% in August, reaching a seasonally adjusted annualized rate of 800,000 units, indicating a strong demand in the housing market [1][5] - The decline in mortgage rates, attributed to the Federal Reserve's monetary policy easing, has contributed to this surge in new home sales [2][3] - However, the labor market is showing signs of weakness, which may limit the sustainability of this growth in home sales [4] Sales Performance - New home sales rose to an annualized rate of 800,000 units in August, a notable increase from the revised July rate of 664,000 units [1][5] - Year-over-year, new home sales increased by 15.4% in August, reflecting a positive trend in the housing sector [2] Mortgage Rates - The Federal Reserve cut its benchmark overnight interest rate by 25 basis points to a target range of 4.00%-4.25%, with expectations of continued reductions through 2025 [3] - The average rate for a 30-year mortgage fell to 6.26%, the lowest in 11 months, down from approximately 7.04% in mid-January [3] Labor Market Conditions - The labor market has softened, with nonfarm payroll gains averaging only 29,000 jobs per month over the three months leading to August, a decrease from 82,000 jobs during the same period last year [4]

But first, new home sales just crossing. Diana Ol has those numbers for us. Diana, David, a massive beat on new home sales.800,000 seasonally adjusted annualized rate in August. The street was looking for 650. This is up 20.5% from July and up 15.4% from August of 2024.Now, we've been talking about mortgage rates, of course, uh, forever and they didn't come down in August. These numbers are based on signed contracts. So, people out shopping in August when the 30-year fix had not started its steep drop that ...

Core Insights - New home sales in August reached an annualized rate of 800,000, significantly exceeding the expected 650,000, marking a 20.5% increase from July and a 15.4% increase from August 2024 [1][5]. Sales and Pricing - The average price of a new home sold in August was $413,500, which is 4.7% higher than July and 1.9% higher than August 2024 [3][4]. - Despite high mortgage rates in August, which were over 6.5%, the sales numbers indicate strong demand, suggesting buyers were active in the market prior to the anticipated drop in rates [2][4]. Inventory and Builder Sentiment - The inventory of new homes has decreased to a 7.4-month supply from a 9-month supply in July, indicating a tightening market [4][5]. - Builder sentiment remains low despite the increase in sales and prices, suggesting potential underlying challenges in the market [5].

KB Home ( KBH ) (-0.05%) just reported earnings, showing a decline in home deliveries and home sale prices. The company also downgraded its guidance; it previously forecast $6.3 billion to $6.5 billion in revenue. It now sees $6.1 billion to $6.2 billion.Needless to say, investors want a piece of that growth. Nothing irrational about that, even if the premiums are getting a little hefty. Seems the only thing it's stirring is movement from individual stocks to more diversified ETF products:This is still anal ...

Core Insights - New home sales for August significantly exceeded expectations, coming in at 800,000 compared to the anticipated 650,000, with previous months also revised upward [1][2] - There was a remarkable 20.5% month-over-month increase in new home sales, indicating a potential seasonal trend rather than a long-term shift [3] - The housing market is showing signs of recovery, with mortgage applications increasing as rates decline, leading to a rise in refinancing activity [5][7] Housing Market Trends - The increase in new home sales may be linked to decreasing mortgage rates, which have encouraged more buyers to enter the market [2][4] - Mortgage application volume rose by 0.6% week-over-week, while refinance applications increased by 1% week-over-week and 42% year-over-year, indicating strong demand for refinancing [7][8] - Building permits have shown better-than-expected results, although there is a long-term deceleration in the issuance of these permits [10] Company-Specific Insights - KB Home is expected to report lower performance metrics due to margin pressures and the need to lower prices to attract buyers [12][14] - The focus for KB Home should be on future guidance regarding deliveries and new orders, which will provide insight into demand trends [16][17] - The company primarily targets first-time homebuyers, who may face more pressure from rising mortgage rates, impacting their sales performance [17][19]

Some breaking economic data coming in much better than expected. New home sales rise 800,000 an annual rate the estimate had been for 650,000. That also means that the sales percentage change month over month is 20.5%.The expectation had actually been a decline of.3%. So it is a stronger number but not a roaring market. It does underscore the fact that mortgages Matt have come in.The mortgage rate looks to be around the lowest since the start of the year, but we've had a Fed that's cut 125 basis points over ...

Core Insights - Sales of new homes experienced an unexpected increase in August, attributed to builders offering significant discounts and reducing prices to attract buyers [1] Group 1: Sales Performance - New home sales saw a notable rise in August, indicating a shift in market dynamics as builders actively sought to stimulate demand through pricing strategies [1] Group 2: Builder Strategies - Builders implemented aggressive discounting and price reductions as a tactic to lure potential buyers, reflecting a competitive response to market conditions [1]

Core Insights - Sales of new U.S. single-family homes increased significantly in August, rising 20.5% to a seasonally adjusted annualized rate of 800,000 units, indicating strong demand despite potential economic headwinds [1][2] - The decline in mortgage rates, with the 30-year mortgage dropping to an 11-month low of 6.26%, has contributed to this surge in new home sales [3] - However, the labor market is showing signs of weakness, with nonfarm payroll gains averaging only 29,000 jobs per month over the last three months, which could limit the sustainability of this sales growth [4] New Home Sales - New home sales accounted for approximately 14% of total U.S. home sales and experienced a year-over-year increase of 15.4% in August [2] - The previous month's sales pace was revised upward from 652,000 to 664,000 units, reflecting a stronger market than initially reported [1] Mortgage Rates - The Federal Reserve's recent decision to cut the benchmark overnight interest rate by 25 basis points to a target range of 4.00%-4.25% is expected to support further declines in mortgage rates [3] - The mortgage rate has decreased from around 7.04% in mid-January to 6.26% in August, indicating a favorable borrowing environment for homebuyers [3] Labor Market Conditions - The labor market has softened, with a significant drop in job creation compared to the previous year, averaging only 29,000 jobs per month versus 82,000 in the same period last year [4]

New-home sales in the US unexpectedly surged in August to the fastest pace since early 2022, likely lifted by builders’ rampant price cuts and sales incentives to motivate buyers in a jittery economy. https://t.co/Dx4p4T963e ...

Market Overview - Stock prices experienced a decline, with the S&P 500 index falling by 0.6%, the Nasdaq Composite decreasing nearly 1%, and the Dow Jones Industrial Average dropping by 0.2% [3] - The decline in stock prices followed a period of record highs earlier in the week, influenced by Fed Chair Jerome Powell's cautious stance on interest rate reductions [4] Federal Reserve Insights - Jerome Powell expressed concerns regarding persistent inflation and a slowing labor market, describing the current economic situation as "challenging" [4] - Investors are anticipating a potential second interest rate reduction in 2025 during the Fed's October meeting, although Powell did not confirm this expectation [4] Economic Indicators - Upcoming economic reports include new residential housing sales for August, with analysts predicting a slight dip to 650,000 from July's 652,000 [6] - Cintas Corporation is expected to report an EPS of $1.20 for the August quarter, an increase from $1.10 in the prior year [6] - Uranium Energy is projected to report a loss per share of $0.04 for the July quarter, compared to a $0.03 loss in the previous year [6] - KB Home aims to exceed a consensus EPS estimate of $1.51 for the August quarter, down from $2.04 in the prior year [6]