My post of February 23rd contained data showing a decline in Existing Home Sales and in the Purchase Price of Homes with mortgages backed by Fannie Mae and Freddie Mac.
Data released on March 23rd also showed a decline in New Home Sales, as shown on the graph below.
Data released on March 26th shows a further decline (into negative territory) of Pending Home Sales, as shown on the graph below. Since it's a "leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect...renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction," this declining data, along with the declines noted above, do not confirm what the stock markets have been doing.
The stock (and commodity) markets have been going up since 2009, while Existing, New, and Pending Home Sales have basically been stagnant at their 2009 low levels...this is a huge negative divergence.
This is obviously an area that has never been resolved by the Fed's QE 1&2 and Operation Twist programs, nor by the politicians (Republicans and Democrats), since the 2007/08 financial crisis began.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
please read my full Disclaimer at this link.
UPCOMING (MAJOR) ECONOMIC EVENTS...
* Tues. May 2 ~ 2-day FOMC Meeting Begins
* Wed. May 3 @ 2:00 pm ET ~ FOMC Announcement
* Fri. May 5 @ 8:30 am ET ~ Employment Data
* Wed. May 24 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Mon. May 29 ~ U.S. Markets closed for Memorial Day holiday
* Wed. May 31 @ 2:00 pm ET ~ Beige Book Report
* Tues. June 13 ~ 2-day FOMC Meeting Begins
* Wed. June 14 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts + @ 2:30 pm ET ~ Fed Chair Press Conference