Housing Market Flat
MBA Mortgage Applications
Purchase Index – Week/Week +0.1%
Refinance Index – Week/Week +9.4%
Composite Index – Week/Week +7.5%
The housing market remains flat.
Attention remains focused on the Greek debt issue but the issue of sovereign debt is a much larger problem.
Bernanke’s testimony yesterday before the Senate Banking Committee indicated that:
– the jobs market has improved but only modestly
– Congress must act on the “Bush tax cuts” before this year’s election
The underlying theme remains that the Fed is powerless to help the economy if fiscal policy remains unsustainable. Sustainable fiscal policy is not conducive to reelection.