Today’s economic data was okay, even though existing home sales came in better than expected and leading economic indicators slightly less than anticipated and both had positive components.

Existing Homes change from a year ago

• 5.46 million Annualized pace +1.9%
• First time buyers 31% from 31%
• Investors 14% from 15%
• Cash 19% from 23%
• Distressed 2% from 3%

Price Ranges

• $0 to $100,000 -11.2%
• $100,000-$200,000 -0.7%
• $250,000 to $500,000 +13.3%
• $500,000 to $750,000 +16.4%
• $750,000 to $1,000,000 +8.1%
• $1,000,000+ -1.5%

The lack of supply at the lower end of the market continues to gum up the works, making it more difficult for first time buyers to enter the market.

Existing Home Sales

The leading economic indicators are mostly backward looking, and they haven’t had the same influence on the markets. Back in the day it was a favorite of Alan Greenspan.

The ten components of The Conference Board Leading Economic Index^® for the U.S. include:

• Average weekly hours, manufacturing
• Average weekly initial claims for unemployment insurance
• Manufacturers’ new orders, consumer goods and materials
• ISM® Index of New Orders
• Manufacturers’ new orders, nondefense capital goods excluding aircraft orders
• Building permits, new private housing units
• Stock prices, 500 common stocks
• Leading Credit Index™
• Interest rate spread, 10-year Treasury bonds less federal funds
• Average consumer expectations for business conditions

I like the resolve of the market today as investors are clearly in wait-and-see mode.