After existing home sales slowed in March (after the brief bounce on lower mortgage rates), new home sales were expected to decline 1.3% MoM in March (the latest print), but by way of the magic of The Census Bureua, New home sales soared 9.6% MoM

Source: Bloomberg

That surprise jump lifted the SAAR to its highest since March 2022...

Source: Bloomberg

Supply continues to contract (some might say 'normalize'). There were 432,000 new homes for sale as of the end of last month, the lowest since April. That represents 7.6 months of supply at the current sales rate. ...

Source: Bloomberg

Interestingly, the number of homes sold, but not yet started, continues to rise, surging to 168K, from 149K, the highest since Feb 2022...

Source: Bloomberg

Mortgage rates had risen during this period, suggesting homebuilder incentives were extreme to say the least...

Source: Bloomberg

It is also worth noting that 'average' home prices are at record highs relative to 'median' home prices... which means high-priced new home-sales are exploding relatively speaking...

Source: Bloomberg

Is this what Powell (or Biden) wants to see?