With mortgage rates lower than most people could have ever predicted and more homes being sold on a monthly basis, we could be prepping ourselves for a housing market rebound. Just with any sort of market analysis, you’re going to get the folks who think that everything is fine and dandy, and you’re going to find writers who feel that everything is in a pre-apocalyptic state.
Fourth quarter earnings season started off very positively adding to the view that the economy is improving moderately. Of the S&P 500 companies, 49 will report Q4 earnings this week and 33 will report next week. As for economic data, the shortened week ahead will focus mainly on the housing sector.
On Tuesday, the Standard & Poor’s/Case-Shiller home price index was released. This is the standard measure for the health of the housing market sector, and looks specifically at the condition of 20 metropolitan areas.
Mixed economic data continues to confuse everyone. It seems that investors ignored poor reports and chose to focus on the less bad data. Equity markets managed to gain about 2.0% last week while interest rates remained relatively unchanged.