The housing sector, oh the housing sector, the one that started it all, the sector that leaked to an entire economy and dragged it into the gloom of recession, this week we are still in the same place where it all got started, no signs of improve-ments are yet seen on it, which in my opinion might be a killer to those who seems to be optimists.
The new home sales is due today, with expectations that it 1.7% in the month of March, reaching to 580,000 housing units, and down from 590,000 units, marking the slowest annual pace since 1995, and still proving that the housing slump is not over yet, and its not even near end.
In another report, we will probably see the positive effect of a weak dollar ob-scured in the durable goods orders, as itâ€™s expected to climb 0.1% in Match, fol-lowing a decline of 1.7% in February, while excluding transportations orders jumped 0.5% after a fall of 2.6% in February, as demand on U.S. goods is glob-ally increasing.
And now, with all the facts we mentioned about the housing market, what can we expected from the Federal Open Market Committee next week??!! What might todayâ€™s numbers do for the odds of cutting rates or holding it steady??!! What might the numbers do for the optimism that is going on through markets nowa-days and I sincerely canâ€™t find a convincing explanation for it??!!
The economy is in a deep problem, and it takes more time for it to start adjusting back, and if, and only if it could turn around all its other problems we might see some improvements in the second half of the year, or maybe more than that, but believe, itâ€™s going to take more time than what optimists thinkâ€¦.