The very strong data from last week, and expected again this week, is better than anyone has been forecasting.

The data from last week confirmed the rebound in the economy continues at a solid pace. This rebound is being led by the housing and manufacturing sectors. The housing data was very strong for July. Existing home sales jumped 24.7% in the month and are now up 8.7% over the last twelve months. The sale of single-family homes was up 23.9% for the month and are up 9.8% YOY. This surge in activity drove median prices up 3.3% for the month and 9.8% YOY. The very low mortgage rates have certainly been the prime driver of this surge as the monthly cost of home ownership is below the rental rates in most markets. The desire to move from densely populated areas is also driving the surge.