Well Consumer Confidence just hit the wire for the month of May at 57.2 missing estimates of 61.0, meaning consumers are losing confidence faster than expected. New home sales beat expectations by 6,000 and increased over last month by 17,000. Although this is positive, new home sales account for just 16% of the total housing market.
Standard & Poor's Case Shiller Index reported today a 14.4% drop in the last year and 16 consecutive months of decline. The index rates only the 20 Major Metro Areas and in my opinion should not reflect the entire nation numbers because of increase in those area was much greater than the average increase across the rest of the United States.
On Friday the Fed's favorite inflation gauge, the Personal Consumption Expenditure will be released, expect it to be a market mover.
For today however, mortgage bonds are trading off today below a key level of resistance, definitely in a locking mode for now. Rates are still in the low 6s!!!