Athen Apaquette

This week was a fairly quiet week with Friday being the big number day.

The 3rd quarter GDP was announced, and it came out very strong (in comparison to recent history not US history).

At 2.9% growth, our economy grew at two times the pace of the 2nd quarter, mostly fueled by personal consumption (not mine but the US’s ) and exports. Surprisingly, it’s the strongest increase in 2 years.

Normally this good news would be bad news for interest rates, pushing them higher, but mortgage investors just yawned.

Investors are now watching the Fed again for indication now not IF they will raise the fed funds rate, but whether it will be a 0.5% instead of the previously anticipated 0.25% hike.

For next week, stayed tuned for the employment numbers for October, which may discourage them if it’s a weak number, or encourage the Fed to raise rates if the employment numbers are strong. Always a market mover.