It's going to make the markets a bit jittery, especially when the market is conditioned to be data-dependent.

When one looks at the MBA data that reveal that applications for the purchases of new homes are down 7.5 percent on a year-over-year basis, it is not hard to see that the gain reported this month is not a sustainable trend.

He is going to dance around the weeds a little bit, calling for the Fed to be data-dependent.

He not only was articulate in his views, but justified his views without making financial markets balk. He was impressive, maybe not as impressive as Greenspan, but Greenspan had 18 years to practice.

This is a sign that the housing market is not exempt from the laws of gravity,

Investors have become completely convinced that we need to see the housing canary buckle under a little bit. If the housing market softens, then investors will view that as the canary in the cave that indicates that central bankers will not have to be as aggressive.