YELLEN: The Housing Market Overall Continues To Be 'Disappointing'

In her prepared remarks, Yellen continued to warn about the lackluster recovery in the U.S. housing market. From the statement:

"The housing sector, however, has shown little recent progress. While this sector has recovered notably from its earlier trough, housing activity leveled off in the wake of last year's increase in mortgage rates, and readings this year have, overall, continued to be disappointing."

In her May testimony to the Joint Economic Committee, Yellen had warned that housing data had been disappointing and that the Fed would be watching housing data closely.

"The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery," she said.

The latest housing data has been strong. Existing home sales, new home sales, pending home sales, and homebuilder confidence are all on an upswing. And there's been a lot of talk of a snapback in housing.

Yellen evidently disagrees.