Can Homebuilders Shrug Off The Taper?

Aug. 16, 2013 9:07 PM ET
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Michael Michaud is the founder owner of Invest2Success.com (http://www.invest2success.com/). He has been investing and trading in the financial markets since 1989.

He founded Invest2Success.com to empower independent and institutional investors traders to take control of their financial destiny by providing them education training mentorship and support for them to research analyze invest and trade in the markets successfully in the long-term.

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Can Homebuilders Shrug Off the Taper? by Zacks Investment Research

Here we are, the end of the week, and with fresh news on the U.S. housing market. It is burning brightly.

The Commerce Department told us on Friday that building permits, the leading indicator in the monthly U.S. housing report, rose +2.7% in July to an annual rate of 943,000.

Apartment permits increased +13.5%.

Single-family permits decreased +1.9%.

The coincident indicator, construction on new U.S. homes, rose +5.9% in July to a seasonally adjusted annual rate of 896,000.

Apartment starts rose +25.5%,

Single-family starts declined +2.2%.

That's up +20.9% from a year ago.

Consensus looked for overall housing starts in July to hit +915,000. The June starts rate of +836,000 was revised to +846,000.

Homebuilder's haven't blinked yet in the face of a September taper.

Thursday's homebuilder reports showed us a gauge of homebuilder confidence hit the highest level in almost eight years!

The NAHB/Wells Fargo housing market index rose 3 points to 59 yesterday, marking the fourth rise in a row. Forecasters expected a 55 reading. July's level was downwardly revised by a point to 56. Any reading above 50 is solid.

Current sales conditions rose 3 points to 62,

Sales expectations in the next six months rose a point to 68, and

Traffic of prospective buyers was unchanged at 45.

My RTI Question: Can U.S. Homebuilders Shrug Off the September Taper?

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