useradd creating 0766 homedir permission?

[Warren Togami <wtogami redhat com>]

[root newcaprica home]# useradd test
[root newcaprica home]# ls -al
total 20
drwxr-xr-x.   5 root   root   4096 2009-04-17 04:17 .
drwxr-xr-x.  24 root   root   4096 2009-04-16 22:38 ..
drw-rw--w-.   4 test   test   4096 2009-04-17 04:17 test

/home/test is 0766.  That can't possibly be correct?

Attempting to login to this user is pretty broken.

Warren Togami
wtogami redhat com