#SaxoStrats: US housing boom bodes well for builders
On our daily morning call today we highlighted the impressive US New Home Sales figures for August coming out at 654K beating estimates of 580K and up from 582K in July. The figures were the strongest in nine years and it shows that US households are comfortable with the level in 30-year mortgages around 3.4%
Natural plays on the continuation of the US housing boom are Home Depot and Toll Brothers. With Home Depot at very rich valuation levels and an impressive price trend we are implementing our US housing exposure through Toll Brothers.
Toll Brothers weekly share price the past five years:
Entry: Buy Toll Brothers (TOL:xnys)
Time horizon: Strategic
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more