Jobs are plentiful, hourly earnings are up and unemployment remained relatively steady for September. All of these reports last week led to talk of inflationary fears once again. This puts a possible recession on the back burner as of now and may give pause to any future Fed rate cuts. We will place heavy emphasis on this week’s Fed minutes report on Tuesday and retail sales will be released on Friday.
Strong retail sales will bode well for the upcoming Christmas shopping season and the economy as a whole but will not help mortgage interest rates, necessarily. Thank you for the opportunity to serve you and your clients.