by Calculated Risk on 8/04/2014 08:52:00 PM

First a note on housing inventory and more ...

I think it is a positive that existing home inventory is increasing. Sometimes rising inventory is a sign of trouble (I was pointing to increasing inventory in 2005 as a sign that the bubble was ending), but now inventory is so low that an increase is probably a positive.

This increase in inventory will also slow house price increases - the recent rate of increase in some areas was unsustainable - and getting inventory back to normal levels is another step towards a healthier market.

Also - another step towards normal is the continuing decline in the number of properties in foreclosure and the downward trend for mortgage delinquencies.   (See Black Knight releases Mortgage Monitor for June that was released this morning for details).

And it even appears, according to the Fed Senior Loan Officer survey that lending standards might be easing a little (too loose is bad, but that isn't the problem right now).  

Tuesday:
• At 10:00 AM, the ISM non-Manufacturing Index for July. The consensus is for a reading of 56.5, up from 56.0 in June. Note: Above 50 indicates expansion.

• Also at 10:00 AM, the Manufacturers' Shipments, Inventories and Orders (Factory Orders) for June. The consensus is for a 0.6% increase in June orders.