Economic Reports 12/27/06

Summary: Later today, the treasury auctions $20B in 2 year notes, Thursday, $13B auction in 5 year notes.

New home sales were up as increased housing starts were completed and put to market.

Tomorrow's existing home sales should show a decline. Inventories are still at all time highs.

New Home Sales Nov +3.4% @ 1.047M vs prior 1.013M
Full Report

Inside the number: The rise was anticipated as housing starts increased +6.7% in Nov. Median price UP +3.2% @ $251,700; Inventory DOWN -1.4% @ 545K; Sales DOWN 15.3% in the last year.

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