Fannie Mae released its January 2019 Economic and Housing Outlook showing that slower economic growth is expected in 2019, but a patient Fed could put housing on a firmer footing. The report went on to say that with the forecast of a slower pace of housing price gains this year, stable rates should support affordability and buyer confidence. Fannie Mae predicts that economic growth, or Gross Domestic Product, will grew at a 2.2% pace in 2019, down from last year's estimated pace of 3.1%.
Americans filing for first time unemployment benefits have fallen to lows seen in November of 1969 in the latest survey. Weekly Initial Jobless Claims fell 13,000 in the latest week to 199,000 and below the 217,000 expected. The labor market remains strong while the U.S. economy is on solid footing. The four-week moving average of claims, which irons out seasonal abnormalities, rose 1,250 to 1.73 million.
Next week is shaping up to be a big week for economic data along with a key meeting by the Federal Reserve. The big reports will be Wednesday's ADP Private Payrolls Report and Friday's Non-Farm Payrolls Report, both for January. The two-day Federal Open Market Committee meeting will kick off on Tuesday and ends Wednesday at 2:00 p.m. ET with the release of the monetary policy statement. There is a zero percent chance of a hike to the benchmark Fed Funds Rate at this meeting but what the Fed says could be market moving.
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