Remember what we said about the housing market?

On Monday I pointed out that the hype in the mainstream media about the recovery of the US housing market was not only incorrect, but a deliberate lie.  I demonstrated that the fundamentals of that sector, as calculated by the US Federal Reserve, were anything but healthy.

What do we read today?

Friday, the Commerce Department released another startling and unexpected statistic: New home sales collapsed in July by a full 13.4%. According to the AP this is a 9-month low.

A rise in interest rates has also resulted in a decrease in mortgage applications.

. . .

There was good news in July. Existing home sales rose to their highest level since 2009. Unfortunately, no one is put to work building, landscaping, selling and manufacturing materials for a home that already exists.

There’s more at the link.  Bold, underlined text is my emphasis.

So much for the naysayers, and those who would mislead US consumers.  The numbers don’t lie . . . and they’re lousy.  I continue to have little or no confidence in the short- to medium-term well-being of the US economy.



  1. The media is told everything is wonderful. After their weekly teeth whitening, they hurry to their desk, smile when the light goes on and repeat everything they were told to say.

    Meanwhile, anyone that lives in the real world has no doubt the economy is in the tank.

  2. Was listening to NPR yesterday (Gotta keep my blood pressure from getting too low) and they were going on about how home-building companies were jacking up the prices on new homes and ruining the housing recovery.

    It's all the fault of those greedy capitalists!

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