Source: Economics Group of Wells Fargo Bank, N.A.
Summary
More Noise than Signal
New home sales surprised to the upside and jumped 20.5% during August. The surge reflects slightly lower mortgage rates and an increase in builders offering buyer incentives.
Take the gain with a huge grain of salt. New home sales are prone to heavy revisions. A flat-ish trend in sales, similar to what has been evident all year, seems more likely.