Once again a Fed rate decision is coming. Yet, unlike the rate decision in September, investors are at ease. Recently, we've seen disappointing non-farms, weak retail sales and plunging new home sales. So, given that, it would seem that the Fed's decision is obvious. Of course, investors have come to the conclusion that a rate hike won't be coming. But investors are wrong, both in the perception of a soft US economy and in their conclusion.
Housing Market Not Really Weak
The first argument that Fed doves are using is the weak new home sales figure. It's true; the figure did undershoot. But take a look at US housing in the global scheme of things. It means nothing. In fact, the US housing market is actually getting stronger.
Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
While the markets are packed with data throughout the week, the most important numbers will come on Wednesday when the FOMC releases their Interest Rate Decision. We will also hear from the Bank of Japan later in the week, but that report is scheduled as tentative at this point. Aside from these two Central Bank announcements, we expect the scheduled data that includes unemployment, CPI, PPI, Industrial Production, Home Sales, and Retail Sales data to take a back seat. Continue reading "Gold Chart of The Week - Bulls vs. Bears"→
U.S. home prices jumped by the most in 6 1/2 years in December, spurred by a low supply of available homes and rising demand.
Home prices rose 8.3 percent in December compared with a year earlier, according to data Tuesday from CoreLogic, a real estate data provider. That is the biggest annual gain since May 2006. Prices rose last year in 46 of 50 states.
Home prices also rose 0.4 percent in December from the previous month. That's a healthy increase given that sales usually slow over the winter months.
Steady increases in prices are helping fuel the housing recovery. They're encouraging some people to sell homes and enticing some would-be buyers to purchase homes before prices rise further.