Europe is creating tough times for markets, but low rates are one bright spot as the MBS safe haven trade rolls on.
Chicago Fed National Activity Index
Housing -New Home Sales for August were 295,000 (annualized) -Previous was 298,000 -This is a 6-month low -Prices were -7.7% year-on-year, worst since July 2009 -This is despite lower prices and record low mortgage rates. -New Homes are important to economic growth: they provide jobs for the workers who build them and many other jobs
We are starting the week with “VOLATILITY” written in large letters so any deviation of fundamentals from expectation could have an outsized result. Chicago Fed National Activity Index (July) -Level -0.06 -Three-Month Moving Average -0.29 New Home Sales are Tuesday, Durable Goods Orders are Wednesday, and Friday has 2nd look 2ndQ2011GDP, Consumer Sentiment, Corporate Profits