Quote Originally Posted by killersheep View Post
3/23/09

USA - Existing Home Sales

Actual4.72M|Forecast4.45M|Previous4.49M

Pretty straightforward sales of existing homes in the US, this was for the month of February, much higher than anticipated. Also, worth noting, unemployment claims in the US were down in February from 654K to 646K. Unemployment, may be scewed because, people may have run out of unemployment benefits or given up.
Housing sales always go up in February from January. They'll go "up" next month too. The rate they went up is similar to most previous years. House prices are still falling, that's the important thing. The really crucial thing is unemployment though. Unemployment is a lagging indicator of recessions, they're over (measured by GDP growth) well before unemployment stops rising. And that's a big problem for this recession as more unemployment means more defaulted mortgages which means more toxic assets. Economists are flapping over the "increase" in home sales and the "decrease" in unemployment when really they're just seasonal patterns/statistical noise. It's hard to believe they're so clueless but they are.