We interrupt this crash and recovery for a brief word about the economy, in particular residential real estate and new home sales. This is an area of the economy I have been studying and writing about for decades.
New home sales were reported earlier this week; they are a component of gross domestic product (existing home sales are not). We learned this morning that second quarter GDP was revised to 3.7 percent. So new home sales are especially important, even though they make up less than 15 percent of total housing sales.