Investors are focusing on the new home sales figures after housing starts were so strong. Strong numbers will surely raise expectations the Fed will lift rates, boosting the dollar.

An end to the super-easy policy is still an important milestone toward an end to the era of zero interest rates.

For Apple, this is another major step towards creating a fully digital home. I suspect sales of Airport Express will take off if Apple markets this feature a little more prominently.

Home sales will remain strong because all the fundamentals remain rock solid. Long-term rates are falling, inflation is falling and employment remains strong.

Despite the slippage in home sales there is no evidence of any nationwide softening of home prices, though it may be difficult to avoid some slippage in the price of residential real estate if only because a slower pace of home sales is likely for 2006,

Existing home sales were stronger than expected and that is providing an offset.