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Economic data and coronavirus quick hits

Economic data and coronavirus quick hits

I really need to rouse myself to write a long-form piece on interest rates, housing, and the economy to post over at Seeking Alpha. Ugh! In the meantime, here are a few quick hits on some important or noteworthy new data.

1. New home sales – interest rates bite, but don’t panic

New home sales are the most leading, but most noisy, of housing data. Yesterday they were reported as having declined -18.3% to 775,000 annualized, a 9 month low, and 204,000 below their July peak (blue in the graph below):

For comparison, the much less volatile single family permits declined -9.8%, and remains above every other month in the past 10 years except for December and January.