Economy Snuggled Up by the Fire? (December 16th – 20th) 🔥
Happy Holidays, everyone! As we count down to the big day, the economy seems to be settling in for a cozy winter’s nap. But don’t be fooled by the quiet – there are still a few economic embers glowing. Let’s take a peek and see what’s been happening.
The Week That Was (December 16th – 20th):
- Housing Market Hangs Tight: We got some updates on the housing market this week, and it seems like things are holding relatively steady. Housing starts (new construction) were a bit lower than expected, but building permits (a sign of future building) actually ticked up. It’s like the housing market is putting on a warm sweater and getting ready to hibernate for the winter, but it’s still keeping an eye on the spring thaw.
- Manufacturing’s Mixed Signals: The Philadelphia Fed Manufacturing Index gave us a mixed picture of the factory scene. Some businesses are feeling frosty, while others are still feeling the heat. It’s like a holiday cookie platter – some gingerbread men, some snowballs, and maybe a few fruitcakes thrown in for good measure.
What does this mean for YOU?
This week’s reports suggest that the economy is winding down for the year, but it’s not completely asleep just yet. Mortgage rates are likely to stay relatively stable for now, but keep an eye out for any surprises in the new year. Think of it like a cozy fire on a cold winter’s night – warm and comforting, but with the potential for a few unexpected sparks.
Looking Ahead (December 23rd – 27th):
It’s a short week due to the Christmas holiday, but there are still a few economic happenings to keep us entertained:
- Consumer Confidence Caroling: We’ll get an updated reading on consumer confidence from the Conference Board. Are people feeling merry and bright about the economy, or are they starting to feel a bit Scrooge-like? This can influence spending and overall economic activity as we head into the new year.
- Durable Goods Dashing: This report tracks orders for big-ticket items like cars and appliances. A strong showing here could indicate that consumers are still feeling generous this holiday season, which is good news for the economy.
The Bottom Line:
The economy seems to be taking a well-deserved break for the holidays, but it’s still worth keeping an eye on those economic indicators. As for mortgage rates, they’re likely to remain relatively stable for now, but stay tuned for any potential shifts in the new year. In the meantime, enjoy the festivities, and don’t hesitate to reach out if you have any questions!
The “Santa Claus Rally”
Ever heard of the “Santa Claus Rally”? It’s a phenomenon where stock prices tend to rise in the week leading up to Christmas and into the new year. While it’s not a guarantee, this trend has been observed for decades, and some attribute it to holiday cheer, increased investor optimism, and year-end bonuses flowing into the market.
So, while Santa is busy delivering presents, he might also be delivering some stock market gains!
-tom