Recent economic reports and the GDP revision to -1% have definitively repudiated any notion that Q1 economic weakness is attributable to the short bouts of frigid weather that hit the northeast and parts of the midwest during Jan/Feb.
With this nonsense out of the way, it is becoming more widely accepted that the housing market is cracking. Even Janet Yellen acknowledged as much last week. We got to see more evidence of this with last week’s Pending Home Sales Index report for April, which the National Association of Realtors describes as the best leading indicator for the housing market.
What was reported last week was ugly, especially in the context of April being one of the four or five best months seasonally for home sales. I wrote an article for Seeking Alpha which was published Friday afternoon: Pending Home Sales Doom.
In the words of Ayn Rand: We can ignore reality, but we can’t ignore the consequences of reality.