Wednesday, July 17, 2013

It's The Economy Stupid: All About Housing

MBA Mortgage Applications were down last week, -2.6%.  Let’s put some positive spin on that.  It was an improvement over the previous week, which was down by -4.0%.  See there…take a negative and make it a positive.  It’s a glass half full kind of thing. 


Housing Starts – Economists kind of missed the mark here.  Housing Starts were 836 thousand, well below economists estimate of 960 thousand.  Housing Starts Month over Month were down by -9.9%, so far below economists estimate of up 5.0% that one has to ask, “What the hell were they looking at?”   


Building Permits – Building Permits were at 911 thousand, below economists estimate of 1 million.  And the Month over Month number was, well, bad.  Building Permits MoM% was down by -7.5%.  Economists estimated the month over month number at a positive 1.5%.


The one thing we can all agree on is that economists are always wrong.  Sometimes spectacularly so.



John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury



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