All about housing this week. A host of data points are expected and analysts are looking for this sector to join the rest in the recovery. So far, the pace of housing has been slow and that’s being diplomatic. Any miss here may halt the rally, while good news may keep the train moving down the tracks.

One thing that may hold housing in check is the fact the middle class is still getting pummeled. Sure the jobs numbers look good on paper, but temp jobs do not turn into an accepted mortgage application. Maybe they did in 2006, but not in this new normal. The low rates though have enticed homeowners into refinancing so the number sin applications may get heavily skewed by that.

Outside of housing, China will come into focus with its banking reports. Investors will be paying close attention to any slip in profits or under-performance. [Read more...]