Consumer Sentiment plays a very large roll in housing. Simply put, if consumers feel good about their prospects and the overall economy - they are more likely to purchase a home. So, it is great news that the Reuters/University of Michigan's Consumer Sentiment Index rose for the third consecutive month. It came in at a revised reading of 71.6 which far outpaced the market expectations of 69.5.
Also, the national economy grew at a much faster pace than originally thought. The U.S. Gross Domestic Product (GDP) for the third quarter was upwardly revised from 2.0% to 2.5%. A half point in an economy our size is a very large move upward and marks the best reading in five quarters and the third straight quarterly improvement. Both of these reports are a big positive for housing demand.