Last week the Veterans Day holiday on Monday contributed to a quiet week for economic news. On Wednesday the reading for the federal budget deficit for October fell from September’s reading of -$120 billion to -$92 billion.
Import Economic Data From Last Week
Weekly Jobless Claims were released Thursday and were reported at 339,000 new claims. This was higher than the expected number of 335,000 new claims helping rates move a bit lower.
Janet Yellen, the President’s choice for chairing the Federal Reserve, defended the Fed’s quantitative easing policy during her first confirmation hearing before the Senate Banking Committee. QE, which involves Fed purchases of $85 billion monthly in Treasury and mortgage backed securities, was designed to keep long-term interest rates and mortgage rates low.
Credit Reporting Agency: Mortgage Defaults Reach 5-Year Low In Q3 2013. Trans Union, one of three major credit reporting agencies in the U.S., reported that mortgage defaults fell to a five-year low to a reading of 4.09 percent for the third quarter of 2013. This reading is lower year-over-year than the revised reading of 5.33 percent for the third quarter of 2012. The reading for third quarter 2013 mortgage defaults is also lower than the reading of 4.32 percent for the second quarter of 2013. A mortgage default is defined as a home loan that is at least two months past due on payments.
What’s On Tap This Week?
We have a big week of economic data set to be released primarily on Wednesday and Thursday. The biggest event this week will be the release of the Fed Minutes, Retail Sales, Existing Home Sales and Weekly Jobless Claims. PPI and CPI will also be released; however, these normal market movers have had little impact lately as inflation is extremely low and is expected to remain low for some time. Below is a list of scheduled releases:
|Date||Time (ET)||Economic Release||Actual||Market Expects||Prior|
|18-Nov||9:00 AM||Net Long-Term TIC Flows||–||NA||-$8.9M|
|18-Nov||10:00 AM||NAHB Housing Market Index||–||55||55|
|19-Nov||8:30 AM||Employment Cost Index||–||0.50%||0.50%|
|20-Nov||7:00 AM||MBA Mortgage Index||–||NA||-1.80%|
|20-Nov||8:30 AM||Retail Sales||–||0.10%||-0.10%|
|20-Nov||8:30 AM||Retail Sales ex-auto||–||0.10%||0.40%|
|20-Nov||8:30 AM||Core CPI||–||0.20%||0.10%|
|20-Nov||10:00 AM||Existing Home Sales||–||5.20M||5.29M|
|20-Nov||10:00 AM||Business Inventories||–||0.40%||0.30%|
|20-Nov||10:30 AM||Crude Inventories||–||NA||2.640M|
|20-Nov||2:00 PM||FOMC Minutes||–||–||–|
|21-Nov||8:30 AM||Initial Claims||–||333K||339K|
|21-Nov||8:30 AM||Continuing Claims||–||2863K||2874K|
|21-Nov||8:30 AM||Core PPI||–||0.10%||0.10%|
|21-Nov||10:00 AM||Philadelphia Fed||–||11.9||19.8|
|21-Nov||10:00 AM||Leading Indicators||–||NA||0.70%|
|21-Nov||10:30 AM||Natural Gas Inventories||–||NA||20 bcf|
|22-Nov||10:00 AM||JOLTS – Job Openings||–||NA||3.883M|