Existing Home Sales
One thing that amazes me most about many of the fundamentals I write about is how poorly they are measured. Today we have the granddaddy of bogus data. NAR said that Existing Home Sales for November were at a seasonally adjusted annual rate of 4,420,000.
This is good because October was 4,250,000 even though it was previously reported at 4,970,000. In fact, NAR revised downward sales for 5 years meaning that the housing bust was much worse that NAR had been stating.
MBA Mortgage Applications
Purchase Index – Week/Week -4.9 %
Refinance Index – Week/Week -1.6 %
Composite Index – Week/Week -2.6 %
Yesterday’s Treasury Auctions
The results of Yesterday’s auction of 4-week Treasury bills is worth looking at. Treasury auctioned $30 billion in 4-week notes. The interest rate was 0.000%. The bid/cover ratio (bids received/bids accepted) of 9.07. The 5-year auction went out at 0.875% with a bid/cover of 2.86. Wealth holders are so concerned about the EU, some U.S. banks and recently bloated equity prices that the are willing to let Treasury hold it for nothing or next to nothing.