On Monday I pointed out that the hype in the mainstream media about the recovery of the US housing market was not only incorrect, but a deliberate lie. I demonstrated that the fundamentals of that sector, as calculated by the US Federal Reserve, were anything but healthy.
Friday, the Commerce Department released another startling and unexpected statistic: New home sales collapsed in July by a full 13.4%. According to the AP this is a 9-month low.
A rise in interest rates has also resulted in a decrease in mortgage applications.
. . .
There was good news in July. Existing home sales rose to their highest level since 2009. Unfortunately, no one is put to work building, landscaping, selling and manufacturing materials for a home that already exists.
There’s more at the link. Bold, underlined text is my emphasis.
So much for the naysayers, and those who would mislead US consumers. The numbers don’t lie . . . and they’re lousy. I continue to have little or no confidence in the short- to medium-term well-being of the US economy.