New-Home sales it's worse than you think

I was surprised to read the headlines that new home sales rose 1.7 percent. After reading the article, you realize the devil is in the details.

Economists were expecting 750,00 annualized home sales in October. The actual number was 728,000. That's right 25,000 lower than the economists were expecting.

The September number was 770,000 initially. But now they revised that number to 716,000. So now, we get a gain of 12,000.

As I have done in the past, I will again add the revised number to this month. What does that do? We went from 770,000 to 728,000. That is a drop of 5 percent. Now add up all the cancellations that we are going to see and you get the real picture.

The best part is Lawerence Yun saying the Sub prime borrowers are disappearing. Didn't he say yesterday that the price of existing home sales went down because of the affluent buyer? Looks like MSM is sleeping again.

http://www.cnbc.com/id/22024246

More on New Home sales later.