The index of pending home sales fell 1.8 percent, the first drop this year, after a revised 0.6 percent increase in May, according to the National Association of Realtors figures shown last Wednesday in Washington.
The Commerce Department figures showed last week that Purchases of new U.S. homes fell also 6.8 percent to a 482,000 annualized pace in June, the weakest since November.
Economic data affects rates by motivating investors to seek out or avoid risk. Higher demand means higher prices and lower rates. Investors are looking for clarity on the Fed’s plans regarding raising rates, among other things.
From here on out, volatility becomes an increasing risk heading into the Fed’s Announcement next Wednesday. It can either work for or against us, but the point is that if it does work against us, the potential damage is bigger than normal.