The year is winding down, but the economic news will be heating up. In the next week or so we will have the “trifecta” of economic events. First, this week we will see the measure of economic growth for the third quarter. This reading will be especially important because, following two strong quarters of economic growth, the economy is expected to slow down as the year comes to a close.
This expected slowdown will factor into the second economic event. Next week the Federal Reserve Board’s Open Market Committee is meeting with many analysts expecting the announcement of the start of tapering of their bond and mortgage purchases. A disappointing economic report could delay this announcement and a surprisingly strong report could cause all systems to gear up for tapering.
Which brings us to the third leg of this economic trilogy. Next week we will also see the October Jobs report. The employment data is always important, but after two disappointing reports, the analysts will be looking for more encouraging news. Like economic growth, any surprising results could cause the Fed to rethink their strategy. One thing for sure, there will be potential for volatile markets in the next week or so.
Dave Hershman is the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School. Want to send this commentary and other news in a personalized format to your sphere database or on social media? Sign up for a free trial at www.OriginationPro.com.