A couple months ago, even the bad news was good news. Now, the good news is bad news. We go down when unemployment drops, because rates go up and even though rates have dropped a lot, now we are going down because unemployment is up.
The spike in unemployment claims was due to a 13-week extension of unemployment benefits, just passed by the Administration/Congress. When it was reported on this board earlier today, that fact was left out, just the "unexpected increase of 64,000 claims" was reported.
<<Payrolls up 58K; unemployment rate 5.7%; the prior month payrol was revised down to -2K from +66K; the unemployment rate rose two tenths to 5.7%, a tenth higher than expected. Overall, this report looks a touch weaker than expected>>
I ask you the same question: is it different this time?
Can housing keep on EXPANDING when:
1) unemplyment keeps on rising (expected to reach 6%) 2) mortgage rates keep on climbing (expected to be 7.5% this summer, might spike as high as 8%) 3) inflation is beginning to climb (we will go after Iraque this year. Think 20-40% higher oil prices)