New Home Sales
The Commerce Department announced this morning that sales of newly constructed homes fell 9.4% last month, reaching their lowest level in 7 months. Analysts were expecting to see a small increase in sales, meaning that the new home portion of the housing sector was much softer than many had thought. Because a weak housing sector makes broader economic growth less likely, this was good news for bonds and mortgage rates. Unfortunately, this report isn’t considered to be highly important to the markets, preventing a more visible reaction.