Economic Tricks and Treats! (October 28th – November 1st) 🎃
Happy November, everyone! As we officially enter the season of cozy sweaters and pumpkin spice everything, let’s take a look at how the economy decided to dress up this past week.
The Week That Was (October 28th – November 1st):
- Inflation In Disguise: The PCE report (the Fed’s favorite inflation measure) showed that price increases are still stubbornly high. This grumpy ghost of inflation just won’t go away! Boo! 👻 This means the Fed might keep raising interest rates to try and scare it off.
- Economic Growth Surprise: But wait, there’s a plot twist! The GDP report revealed that the economy actually grew faster than expected in the third quarter. It seems like the economy decided to wear a superhero costume instead of a spooky one! This is good news, but it might also make the Fed even more determined to fight inflation (they don’t want the economy to get too powerful).
What does this mean for YOU?
This mixed bag of economic news means that mortgage rates are likely to stay elevated for a while. Think of it like this: the Fed is like a homeowner trying to keep their house at a comfortable temperature. They’re adjusting the thermostat (interest rates) to find the perfect balance between a chilly economy and an overheated one.
Looking Ahead (November 4th – 8th):
This week, we’ll get more clues about the job market with the release of the monthly jobs report. We’ll also get some insights into the services sector with the ISM Non-Manufacturing PMI. These reports could give us a better idea of whether the economy is heading towards a “trick” (slowdown) or a “treat” (continued growth).
The Bottom Line:
The economy is still playing a bit of a Halloween game with us, with some spooky surprises and unexpected twists. But don’t worry, I’ll be here to keep you updated and help you navigate the mortgage maze. And as always, if you have any questions or are ready to start your homeownership journey, don’t hesitate to reach out!
November 5th is national Doughnut Day , a Delicious day to celebrate !!!
National Doughnut Day is celebrated annually on the first Friday in November. This day was created in 1938 by the Salvation Army to honor the women who served doughnuts to soldiers during World War I. These women, known as “doughnut lassies,” would often fry doughnuts in soldiers’ helmets over open fires. The doughnuts were a morale booster for the soldiers and a reminder of home.
-tom