New Home Sales Surged +18.0% In August

New Home sales surged +18.0% in August to a much higher-than-expected annual rate of 504K, the biggest monthly increase since January 1992. Consensus for September New Home Sales is for a decline of -6.8% to 470K (YoY). Treasuriesare opening slightly higher this morning with MBS 1-2 ticks tighter to treasuryhedges, and the curve has bull flattenedwith 2s10s down -1.7 bps.

Provided by SWMC