Housing Helps the Market

Housing showed some signs of life again today. New home sales were up as were refinancing numbers. Lowe's beat earnings today. They also upped their estimates for the year. The market is up nearly 2% as a result. But why are home sales so important?

The complete recovery of the economy rests with the housing market. Housing was the first to go and has to be the first to come back. Until people can afford their homes, how can they afford anything else? Financials also rest along these same lines. Until they offer affordable loans, no one can pay off mortgages. To see the backbone in the recovery, we will have to watch financials and housing. However, this is no reason to buy housing stocks. They have to get out of debt before they make money. Soon enough their will be money to be made with this. First, lets look elsewhere for cash money. Look at the bounce back - its not too hard to find.