An increase in new home sales, a decrease in foreclosures and record rental rates signal good health in this economic sector.

August new home sales rose for the second consecutive month, reaching their highest level in over six years. From August 2013 to August 2014, new home sales increased by 33 percent.

Some economic experts conclude that downside risk in housing is limited, with a 4.8-month supply of inventory amid record rental rates. Foreclosures have decreased by 22 percent year-over-year, indicating a brighter future for the housing market.

Steve Kleber of Kleber & Associates writes, "I'm confident that the housing market is now entering the second phase of its recovery and am anticipating accelerating volume growth combined with escalating pricing."

Q2 GDP increased to 4.6 percent, growing at the fastest pace since 2011. Unemployment has fallen below 6 percent for the first time in six years, breaking a critical milestone. Consumer sentiment is at its highest.

"The economic backdrop provides ample cause for optimism with broad gains in the macro environment,"
added Kleber.