I expected Carnage with all the reports out today...but was obviously wrong.
Weak manufacturing reports drove money out of equities and the safety offered by the bond market drove money INTO mortgage backed securities. This despite the announcement of a record number of T-notes to be auctioned off next week.
HOUSING construction is growing faster than it has in years according to the housing starts data. We are at levels not seen since 2007...as reported of late. Some of that could be credited to people getting in on the last of the tax credit.
Initial Job Claims reported worse than expected at 551k.
Personal Spending report shows INCREASED spending...until we subtract numbers for "new car sales" due to the cash for clunkers program. We saw the same spike in retail spending after tax returns.
PENDING HOME SALES show WAY better than expected as well. Note: NOW is the time.
Rural Development out of money? The answer is yes...but we are still funding them at Metlife. When more money is allocated to them...they will guarantee our loans. So: business as usual for RD loans, send them over!
