Across the country, Housing Completions are down 25% from the cyclical high 11 months ago.  However, the latest employment poll shows that the construction sector is growing, creating 15K new positions last month, which accounted for 1/6 of all public job growth.  So either more homes are again under construction or the rest of the economy has slowed way down.  This chart from the Fed shows their projection for continued slowing growth and slightly higher unemployment, which would lead me to believe it’s the latter.

Goldman Sachs said this morning that they see bond yields moving lower in the mid-term, which corroborates the Fed’s projections. We’ll see Existing Home Sales on Wednesday and Jobless Claims as well as worldwide PMI data on Thursday.