Before we discuss this coming week, let's reflect on last weeks big news. According to Friday's release of the November Employment report that jobs are making a comeback. There is still some apprehension as many want to see if this is just to to the seasonal holiday employment or if the jobs are long-term in nature.
Mortgage rates suffered a set back every day last week and home shoppers should be aware that mortgage rates rose by 0.250% - 0.375% on average by the end of the week. Will it continue this week?
This week has little news compared to the past several weeks and that should give everyone a breather. With that being said what could move markets this week.
Although Ben Bernanke will be speaking in front of the Economic Club of Washington D.C. on Monday, it is more of an informal speech and should not impact markets unless he goes out of his way to rattle investor's eardrums.
During the middle of the week, the bond market will be on it's toes as the Treasury will auction off a total of $74 Billion of new securities. 3-year notes are to be auctioned on Tuesday. 10-year notes are to be auctioned on Wednesday and the 30-year bond will wrap up the auctions on Thursday. All eyes will be on the cover-to-bid ratio and the percentage of foreign participation.
The week will end on another bang as investors worldwide will be laser focused on the details of the release of the November Retail Sales report. Since consumer spending lubricates nearly two-thirds of the U.S. economy, the monthly increase will be especially important. It is anticipated that there will be 0.7% increase from October's numbers. Anything short would be a blow to the chants of the recession being over.
Home loan shoppers and retirement funds will continue their battle for investment dollars from abroad and here in the US. As-is the par for the course, good economic news will favor the stock market and take money away from mortgage bonds which will result in higher mortgage rates. Conversely, bad economic news will drive investors into the safety of bonds which will help home buyers with lower mortgage rates.
Want to see what other economic reports might impact home buyers in the coming week? Stop by and check out the Financial Market Update Provided to You Exclusively by The Barath Group.
This Is The Week Ahead for December 6th.
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