Yesterday was important, due to the publication of a slew of statistics relating to the US real estate market. This sector is critical to the unfolding of events, both in terms of global economic activity and of the health of bank balance sheets in particular, given their still too high correlation to these particular assets.

First, the requests for mortgage loans for the week of 13 November fell to the lows of 1997 when interest rates are hovering near 5% on 30-year loans, i.e. close to their historic lows; the residential real estate market is benefiting from the federal government tax credit set up in February: $8,000 for first-time homebuyers, and now extended to next February!