Economy Dreaming of a White Christmas? (December 9th – 13th) ❄️
Greetings from the North Pole of economic news! While you were busy hanging stockings and humming carols, the economic elves were busy crunching numbers. Let’s peek into Santa’s sack and see what gifts (or lumps of coal) the economy delivered this week.
The Week That Was (December 9th – 13th):
- Inflation’s Icy Grip: The CPI report (Consumer Price Index) showed that inflation cooled down a bit in November, but it’s still higher than the Fed would like. Think of it like a patch of ice on the sidewalk – it’s not as slippery as it was, but you still need to tread carefully. This means the Fed might not be ready to hit the brakes on interest rate hikes just yet.
- Consumer Spirits Brighten: Despite inflation’s chill, consumer sentiment actually improved a bit this week. Maybe those holiday decorations and festive tunes are putting people in a good mood? Or perhaps they’re feeling optimistic about the new year. Either way, this could lead to a bit of a spending spree this holiday season.
What does this mean for YOU?
This week’s reports suggest that the economy is still navigating a tricky path. Inflation is gradually easing, but it’s not gone yet. This means mortgage rates are likely to stay elevated for a while, but we might see some gradual declines in the new year. Think of it like a winter hike – there might be some uphill climbs, but the view from the top will be worth it!
Looking Ahead (December 16th – 20th):
As we head into the final stretch of the year, the economic calendar is starting to look a bit like a sparsely decorated Christmas tree. But there are still a few ornaments to hang:
- Housing Market Hints: We’ll get a glimpse into the housing market with reports on housing starts and building permits. This will give us a sense of how much construction is happening and what the future might hold for home prices.
- Manufacturing’s Final Bow: The Philadelphia Fed Manufacturing Index will give us one last look at the manufacturing sector before the year wraps up.
- December 20th is National Ugly Christmas Sweater Day: Just like those sweaters with their mismatched colors and quirky decorations, the economy can sometimes seem a bit… well, ugly. But don’t worry, even with those occasional snags and loose threads, the overall picture is still looking pretty cozy and bright.
The Bottom Line:
The economy is showing signs of resilience as we approach the new year. Inflation is slowly but surely cooling down, and consumers seem to be in a festive mood. As for mortgage rates, they’re likely to remain relatively stable for now, but keep an eye out for any potential shifts in the coming weeks. In the meantime, enjoy the holiday season, and don’t hesitate to reach out if you have any questions!
-tom