Announced yesterday, Existing Home Sales decreased 6.4% in December, much lower than expected and the largest monthly decrease since November 2015. It is clear that the housing market is under pressure, partially from higher mortgage rates making housing less affordable. While on its own housing is only 4% of overall GDP, weakness can spread to other parts of the economy and adds another reason for the Federal Reserve to be patient with interest rate policy in the months ahead. In all, equity futures and bond yields are higher this morning heading into the market open.
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