Case Shiller Drops For Third Month

From the WSJ:

Home prices across 20 major metropolitan areas fell 1.3% in October from September, the third straight month-over-month drop, according to the S&P/Case-Shiller home-price index released Tuesday. Many economists expect the declines to continue into at least next spring, erasing most of the gains made since prices bottomed out in early 2009.

The housing market, which appeared poised for a recovery earlier in the year, now could be heading for a second downward drift.

"This looks like a double-dip [in housing] is pretty much on the way, if not already here," said David Blitzer, chairman of the Standard & Poor's index committee. "Somebody who thought last year that it's going to be straight up from here was wrong."

Given the massive inventory overhand in the system, this shouldn't be surprising.

Initial Jobless Claims GREAT: Durable Goods Numbers Very Bad

From Bloomberg:

Applications for unemployment benefits in the U.S. fell more than forecast last week to the lowest level since July 2008, reinforcing evidence the labor market is healing.

Jobless claims declined by 34,000 to 407,000 in the week ended Nov. 20, Labor Department figures showed today in Washington. The median projection of economists surveyed by Bloomberg News called for a drop to 435,000. The total number of people receiving unemployment insurance decreased to the lowest in two years, and those on extended payments also fell.

Fewer firings lay the groundwork for a pickup in job creation that will generate incomes and spur consumer spending, which accounts for 70 percent of the economy. Even with companies firing fewer workers, unemployment will be slow to decline, according to the Federal Reserve’s latest forecast in which policy makers also lowered their growth projections.

This is -- without a doubt -- the best data point I've seen in some time. This number has been stuck in the 450,000 range for the better part of this year. While the length of this elevated number has been consistent with the last two recoveries, their elevated level has been an extremely concerning number. However -- this number is really good and the best print all year. While this is only one data point, it's a really good one.

However,

Orders for U.S.-made durable goods fell 3.3% in October -- the largest decline since January of 2009 -- as transportation orders fell, the Commerce Department reported Wednesday. Economists polled by MarketWatch had expected a decline of 0.2%. Excluding transportation, new orders fell 2.7% in October - the largest decline since March of 2009. Core durable-goods orders, which are orders for capital goods excluding defense and aircraft, fell 4.5% in October after a 1.9% rise in September.

This number was bad across the board; most sub areas of the report showed a decline. The slowdown in the manufacturing sector continues.

We're Nowhere Near a Bottom in Housing

From CNBC:

More U.S. consumers are falling behind on their mortgages, an indication that the housing market has yet to hit bottom, a top credit bureau executive told Reuters.

Dann Adams, president of U.S. Information Systems for Equifax, reported that 7 percent of homeowners with mortgages were at least 30 days late on their loans in February, an increase of more than 50 percent from a year earlier.

He also said 39.8 percent of subprime borrowers were at least 30 days behind on their home mortgage loans, up 23.7 percent from last year.