Is the U.S. Housing Recovery Gaining Momentum?

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Aug. 20 (Bloomberg) –- Bloomberg’s Joe Brusuelas discusses Home Depot's results and the implications for the U.S. housing recovery with Olivia Sterns on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)

Less -- bursuelas.

Home depot beat their earnings estimates.

They raised the full-year guidance.

Is this proof that the housing recovery is gaining momentum?

Home depot is benefiting from tailwinds.

The first is at home renovation has picked up over the last couple of quarters.

We are just seizing how -- seeing housing starts begin to accelerate into what will be a multi-year recovery.

That will further support stocks like home depot and lowe's. the big concern for the housing market is how quickly we have seen interest rates run up.

Yields are slightly lower today.

The question is, couldn't rising interest rates cut the legs of the housing recovery?

We have two distinct issues.

In existing home sales support, it could.

Many buyers expect improvement in tomorrow's data will likely take a step back.

In a home sales market, we have something different.

So inventory has been pulled from the market.

New-home's tend to be for more upscale buyers.

We just mentioned that the s&p home price indexes near a five-year high.

This is not a totally even stephen recovery.

Which parts of the country have seen gains, which parts are the weak spots?

You are seeing the biggest bounce in areas where you saw the most damage.

The problem children we focused on were vegans -- vegas and phoenix.

In some of those markets, it is very frothy, and they have what i call bubblettes.

The prices have really shot -- overshot.

What are we expecting out of the home data this week?

Lower growth.

I would call it a palace -- pause in the housing market recovery.

They do very much for joining

This text has been automatically generated. It may not be 100% accurate.

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