Last week’s Consumer Confidence report shows the lowest reading since January as it fell 2.4 points in June to 62.0. Other recent market news includes the lack of improvement in jobless claims along with the Dow rallying to close at only 0.2% down on Thursday. With the recent economic news, it’s a great time to purchase a new home with home loan rates remaining low.
Forecast for the Week
This will be a short week with Independence Day giving the markets a break this Wednesday. Among the news items for the week is the Motor Vehicle Sales announcement which could help reveal indications in the trends of consumer spending. The Jobless Claims report will be released this coming Thursday and will be closely watched by investors.
To close out the week, the Money Supply – which could help investors with the economic activity outlook – will be released on Thursday followed by the Employment Situation on Friday, July 6th, giving investors a look into potential market indicators and the current unemployment level.
It’s important to remember that weak economic news typically causes money to flow out of Stocks and into Bonds which helps both Bonds as well as home loan rates to improve. The important point to take away from the recent market news reports is that now continues to be an excellent time to purchase or refinance a home as home loan rates continue to remain near historic lows.
Graph Data Source: Haver Analytics courtesy of www.bloomberg.com.