Current sales of new homes are at their highest level of the recovery, according to the single-family sales component from the June home builders' report. The component is up 2 points this month to a recovery high of 32. But strength in this component, as is true throughout the home builders' report, has yet to translate to much strength for actual sales as measured by the government.
Recovery highs sweep the home builders' report where the composite index is up 1 point to 29 vs a revised 28 in May. Next data on the housing sector will be tomorrow with housing starts for May, which are expected to improve slightly, while new home sales, which again have been flat, will be released early next week. Today's report should be a plus for the stock market but the Dow isn't showing much early reaction.