This week has plenty of economic reports in addition to the last meeting for the Federal Open Market Committee (FOMC). With no economic reports on Monday, all attention will be around the Dubai bailout and the new legislation awaiting President Obama's signature.
On Tuesday, all eyes will be on the November's Producer Price Index which measures inflationary pressure at the producer level. It's not a matter if there will be inflation but how much. Looking for 0.8% rise overall and 0.2% rise at the core (less food and energy prices). Also scheduled for release will be November's Industrial Production, Capacity Utilization and the Empire State Index.
Although the FOMC meeting begins on Tuesday, the meeting will not adjourn until Wednesday afternoon. Wednesday will be the big day of the week as November's Housing Starts, November's Building Permit and November's Consumer Price Index (CPI)will give both the real estate industry and Wall Street something to digest prior to the FED's decision on short-term interest rates. No one expects the FED to raise short-term rates. More importantly, it's not what they do but rather what they will say.
Thursday will be a day that Wall Street will get a glimpse of what to expect in the next 3-6 months with the release of November's Index of Leading Economic Indicators (LEI). It is highly anticipated that forecasts are for greater economic activity and growth.
There are no economic reports for Friday so keep an ear open for any geo-political headlines that could disrupt the markets as traders protect themselves for the weekend.
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 13th.
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- If You Don't Know Sara Bonert, You Should.
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