New home sales (contracts signed) rise *sharply*…
what goes up..must come down..let the spinning wheel turn…..
Borrowing future sales, FHA insurance premiums going up and home buyer credit ending led IMO to borrowing against future sales, like cash for clunkers…these are contracts, not actual completed sales also…what will Ben do when this surge ends and we have no buyers left? put out a misleading commercial like GM?
Calculated Risk has the scoop (with graphs!)
…New home sales are counted when the contract is signed, so this pickup in activity is probably related to the tax credit. Note that that a few thousand extra sales NSA in March can make a huge difference in the SAAR.
Any further pickup in sales because of the tax credit will happen in April and then sales will probably decline again