This is a very busy week. We start with a very important financial release on Wednesday. The first reading of economic growth for the third quarter will give analysts an idea as to whether the economy is slowing as many have expected. And we expect that the Federal Reserve Board’s Open Market Committee will also be watching closely. Because just a few hours later, they will be announcing their decision of whether they will be lowering rates or not.
The majority of market watchers are expecting a rate decrease, but the consensus is not overwhelming. With corporate earnings starting out strong and talk of a China trade deal, there may be some sentiment to hold off until the December meeting, especially if economic growth comes out on the strong side Wednesday morning.
The news does not end there. On Thursday we get a reading on personal income and spending for last month. Consumer spending has been one of the economy’s strong points this year and the most recent weak retail sales report is a concern. Of course, continued strong spending is tied to continued employment growth and we end the week with October’s jobs report. With a strike going on, it is possible that there will be a temporary suppression of the employment data, which will likely be made up after the effect of the strike fades.
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.