Intial claims were down(321K) but leading indicators were also down again (-.2). It appears to be a wash. Bonds are at -3/32 and our market is FLAT. If the economy is falling off we better hope it does not kill the housing market. The housing market is the glue that is holding our market together. It will cool off but how much? Rates in the 7 % range are not unreasonable and could easily happen in a short period of time. We have seen the bottom of rates but many of you have never seen the top side. It can hurt!