8/27/09

Good morning. New Homes Sales were up almost 10% in July, the biggest jump since early 2005 and was the fifth increase in seven months. Two other statistics to note: the number of houses on the market dropped to its lowest level in 16 years, but median prices are down 12% from a year ago. Yesterday’s sale of 5-yr Treasury notes went pretty well, as did Tuesday’s auction.
In addition to the 7-yr sale today, we’ve already had the GDP numbers for the 2nd quarter, along with Jobless Claims. Jobless Claims fell last week to 570,000, which is about as expected and still a large number, and those collecting long-term unemployment benefits dropped to the lowest level since April. And the Commerce Department said GDP (total goods and services output) fell at a 1 percent annual rate, unchanged from last month's estimate, slightly better than expected. After the news we find mortgage prices worse this morning by about .125.