The mainstream media can't seem to get enough of the "improvement" in home sales this month over last year. Up 40% on a seasonally adjusted basis. What is a seasonally adjusted basis? It is a scam, so that the chief economists do not have to report anything bad about the market! The truth, is that July historically isn't a strong month for sales, but this month, we see many homebuyers who were sitting on the fence now jumping in, because rates are going up, and they want to use their locked in low rates before they expire. So when they use "seasonally adjusted" numbers, and July historically being a low volume month, OF COURSE if people are jumping in to use their low rate before it expires, this is going to skew the statistics an incredible amount, on a seasonally adjusted basis, because this is a season that typically sees very few sales.
