And so it appears that America’s homebuilders – cock-a-hoop over tax reform (which caps the mortgage interest deduction?) – aren’t concerned about affordability, about rising rates, and stagnant incomes. In fact they have not been this optimistic since December 1999.

There’s just one thing… as University of Michigan consumer confidence data shows, for the ‘average joe’, homebuying conditions are near their worst since 2009 driven by interest rate concerns.

But don’t let that taint homebuilders’ self-reinforcing confidence…

As Upton Sinclair once said: “It is difficult to get a man to understand something, when his salary depends upon his not understanding it!”

Or maybe this is why?

Homebuilder sentiment is at an 18-year high because crypto-hodlers can afford homes now

— Mark Constantine (@vexmark) December 18, 2017