This holiday-shortened week brings us the release of seven relevant economic reports for the markets to digest. All of the week's data is being posted over just three days, so the first part of the week should be interesting for mortgage shoppers.
October's Existing Home Sales data will be posted late tomorrow morning. This report, along with Wednesday's New Home Sales data are the least important reports of the week. They give us a measurement of housing sector strength and mortgage credit demand, but the bond market generally does not rely heavily on their results. They both are expected to show increases in sales, indicating that the housing sector may be strengthening.
The first important data comes early Tuesday morning when the first revision to the 3rd Quarter Gross Domestic Product (GDP) will be posted. The GDP revision is expected to show a downward revision from last month's preliminary reading of a 3.5% annual rate of expansion. Curre nt forecasts call for a reading of approximately 2.9%, meaning that there was less economic growth during the third quarter than previously thought. This would be good news for the bond market and mortgage rates, but it will likely take a smaller than expected reading for this report to improve mortgage rates