Mortgage Rate, Home Sales: Weakness Accelerates

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Jim Cramer was spot on with calling the housing bottom. Oh wait - he was dead wrong again about this as he is about everything else: downward prior revision and lower than expectations. At least he is consistent at batting 0: almost as good as someone batting 1000.

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Bernanke will need to buy a whole lot of MBS pretty soon or it will be really tough to spin the ongoing mortgage refi and origination collapse (especially with the GSE on the hook for 125% LTV) as green shoots.