Economic Reports 09/27/06
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
August Durable Goods -0.5% vs prior -2.7%
Inside the number: 1st back to back decline since 03. A broadbased fall, with core capital goods equipment -0.3% vs prior +1.6%. Ex transportation new orders -2%, the largest decline this year.
August New Home Sales +4.1% @ 1.05M Full Report
Inside the number: the 1st increase since March, but sales in May, June and July were revised sharply lower. Median sales price -1.3%, the 1st YOY decline since 2003. Inventory dropped 0.4% to 568K from a record 570K, inventories +19% YOY.
Despite the sales increase there's little reason for near-term optimism about growth in new home sales, economists said.
"The housing downturn is not about to end quickly and, by the time it does, public awareness of the associated loss of wealth will be far higher than now," said HVB's Roger Kubarych.
August MBA Loan Applications -5.5%
Inside the number: Despite interest rates falling 18 basis points, the number of loan applications hit the lowest level since Nov 03, refi's -4.1%, in the past year -21.1%.
This helps our case that the "demand" was artificial to begin with (not based on rising wages and rents). And the Fed will not be able to print and lower its way out of this mess.
If there are no takers, it does'nt matter how cheap the money gets or how much there is floating around.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
August Durable Goods -0.5% vs prior -2.7%
Inside the number: 1st back to back decline since 03. A broadbased fall, with core capital goods equipment -0.3% vs prior +1.6%. Ex transportation new orders -2%, the largest decline this year.
August New Home Sales +4.1% @ 1.05M Full Report
Inside the number: the 1st increase since March, but sales in May, June and July were revised sharply lower. Median sales price -1.3%, the 1st YOY decline since 2003. Inventory dropped 0.4% to 568K from a record 570K, inventories +19% YOY.
Despite the sales increase there's little reason for near-term optimism about growth in new home sales, economists said.
"The housing downturn is not about to end quickly and, by the time it does, public awareness of the associated loss of wealth will be far higher than now," said HVB's Roger Kubarych.
August MBA Loan Applications -5.5%
Inside the number: Despite interest rates falling 18 basis points, the number of loan applications hit the lowest level since Nov 03, refi's -4.1%, in the past year -21.1%.
This helps our case that the "demand" was artificial to begin with (not based on rising wages and rents). And the Fed will not be able to print and lower its way out of this mess.
If there are no takers, it does'nt matter how cheap the money gets or how much there is floating around.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
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