The Upcoming Housing Boom

The slowdown in new home building has hurt profits and sales for the nation's home builders, including Pulte Homes (up $0.46 to $32.66, Charts), Centex (up $0.66 to $54.27, Charts) D.R. Horton (up $0.34 to $24.31, Charts), Lennar (up $0.80 to $48.27, Charts), K.B. Home (up $0.69 to $46.30, Charts) and Toll Brothers (up $0.06 to $30.50, Charts).

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Just as predicted mortgage rates started to rise. I stated then this would happen do to demand of mortgage applications. That the demand would over come the economic factors that want to drive rates down. Since this statement the FEDs have left rates alone. Gas is now for the first time in a long time under $2.00 in Baltimore. The fuel of the inflation factor is officially dead.

Now we get the great news out today. Units of new home sales increased over 5%. Home inventory shrunk.

The pieces are fitting together. HOME PRICES ARE UNDER A BUYER's DEMAND.

Of course that is not what the article or any other article emphasize. Momentum is on the bubble head side. The lazy fed worker reports on the perception - Nobody questions him and life goes on for another month. PREPARE FOR SOME MAJOR NUMBER CORRECTIONS. Because the pieces are just not adding up.