The most recent economic data had indicated that the economy was indeed stronger than we expected. The stock market was recovering nicely from losses incurred late last year, despite speed bumps in the road as the trade war with China heated up once again after talks stalled. Jobs data, though volatile, still has showed that we were adding enough jobs each month to keep the unemployment rate historically low. And the measure of economic growth for the first quarter exceeded expectations.
Now we will see a fresh batch of data which will either change the equation or reinforce what we have seen thus far this year. First, we get a revision of the GDP, the measure of economic growth for the first quarter. This will be followed by the numbers on personal income and spending for the month of April. The following week will feature the jobs report which will give the first reading of the jobs data for May.
All this data will give the Federal Reserve plenty to chew on when they meet in a few weeks. While most are expecting no change in the rates at the next meeting, weaker data and a continued escalation in the trade war could increase calls for a Fed rate cut in the coming months. As of now, the data does not support a cut. Interest rates continue to be lower than expected this year. This represents continued good news for consumers who are in the market to make big purchases such as homes and cars. And those purchases will help the economy as well.
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.