Construction spending in July landed a healthy 5.8% above where it was a year ago. In line with this, the National Association of Home Builders (NAHB) pegged builder confidence at a still high 67.

The NAHB Chairman explained, "builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations."

In Freddie Mac's August Forecast, their chief economist noted, "the good news is that purchase mortgage applications have recently rebounded to above year-ago levels."