We were riding high on not so good news. The stock market hit record levels and interest rates were down. This was a reaction to a poor jobs report released in early June, along with the backdrop of trade wars raging. More and more analysts were betting on a rate decrease by the Federal Reserve Board coming as early as the end of this month.
Then in early July we saw a rebound within the employment sector, as the economy produced over 200,000 jobs in June. Immediately stocks fell and rates rose on the good news. The reaction in the markets was not severe, but obviously the rate decrease in July was called into question. Good news was bad news for the markets.
The question of a rate decrease will be answered very quickly as the Fed meets next week. And even though the next jobs report will not be released until after the meeting, the Fed will have plenty of data to consider when they make their decision. The most important number may be the preliminary measure of economic growth for the second quarter. The GPD report is due out this Friday and will be watched closely by the markets. Again, good economic news may be not so great news for the markets.
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.