This is a syndicated repost courtesy of Confounded Interest - Online Course Notes For Financial Markets. To view original, click here. Reposted with permission.
The National Association of Home Builders (NAHB) deserves “The Mr. Obvious Award” for its finding that builder confidence increased for the 55 year old and older market in Q3.
Liquidity moves markets!Follow the money. Find the profits!
Builder confidence in the single-family 55+ housing market remains strong in the third quarter of 2015 with a reading of 60, up three points from the previous quarter, according to the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) released today. This is the sixth consecutive quarter with a reading above 50.
“Builders have a positive outlook on the 55+ housing market,” said Timothy McCarthy, chairman of NAHB’s 55+ Housing Industry Council and managing partner of Traditions of America in Radnor, Pa. “In fact, the markets for single-family, apartments and condos are all doing quite well, and we expect that trend to continue.”
Thank you, Mr. Obvious. The most recent jobs report showed that about the only jobs added to the economy in October were for those 55 and older.
As the 55 and older unemployment rates keeps dropping (it is currently only 3.83%), homebuilders are becoming more confident.
But the problem remains in the economy that the 25-54 age group is not doing so well.
Will The Fed dare raise interest rates when there is over $18 trillion in Treasury debt outstanding and the 25-54 age segment sucking wind?
I predict that at the December Federal Reserve Open Market Committee (FOMC) meeting, Stanley Fischer will distract everyone from the obvious question by yelling “Squirrel!!!!!”
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