Rates Down As US & Europe Politicians Fail
Existing Home Sales
-4,970,000 (seasonally adjusted annual rate). Previous 4,910,000.
-Up 1.4% September to October
-Up 13.5% Oct 2010 to Oct 2011
-OK news for housing
-But cancelled deals jumped from 18% to 33%
–Full NAR Report
Eurozone Debt & U.S. Super Committee
As the Eurozone debt concern spreads we are seeing flight to quality buying of U.S. Treasuries and mortgages despite the fact that the debt super-committee accomplished nothing. The fact is this: politicians in most countries are incapable of achieving fiscal sustainability. The Eurozone have now seen three regimes changed by the markets. The only good news here is that it drives U.S. bond buying and keeps our rates low.
The Consumer Metrics Absolute Demand Index started falling again late last week. This is a sensitive leading indicator. It is most certainly not supporting to the rosy 4thQ GDP forecasts we saw pitched in the media over the weekend.
Chicago Federal Reserve National Activity Index
This Index moved to -0.13 for October from a previous reading of -0.22.