Consumer Confidence rose to 56.9 in August, the highest in three months and a five-point jump from 51.9 in July. The direction of the Conference Board, who publishes the index was quoted as saying: "consumer confidence readings suggest that the economy remains stuck in neutral, but may be showing signs of improvement by early next year."
New home Sales...
New Home Sales up by 2.4% in July.
515k Annual rate lower than forecast of 525k.
June New Home Sales revised lower from 530k to 503k. That's the lowest since 1991!
On a positive note, inventory is correcting, now down to a 10.1 inventory, which is the lowest in 5 months.
Median prices rose again this month, but are still off 6.3$ from a year ago and down 12.1% from the peak in early 2007.
Still, no major reaction in the MBS market.
Treasury prices sold off 3-4 ticks on the data, but MBS only a tick or two. Both have rebounded slightly since, but MBS to a greater extent than treasuries. What? A Tightening? Are we Dreaming?
So far, we're still feeling floaty, as are many traders, waiting for FOMC minutes at 2pm.