THE BASIS POINT

Linkage: Declining Inventory NOT Good Sign

Here are some important reads since yesterday. I’ve been out of the office, and will resume commentary tomorrow.

-BofA Drops Bomb: No More Selling Loans To Fannie (NationalMortgageNews & SEC Stmt)

-Underwater Homes Hurt Employment Rate Less Than You Think (Boston Fed via David Blitzer)

-Declining Inventory Right Now Is NOT A Good Sign (BigPicture by Johathan Miller)

-Housing Takes Another Step Out Of The Cellar (RealTimeEconomics)

-5 Markets Beating The Housing Bust (SmartMoney)