Last week the jobless claims came in at a seasonally adjusted total of 410,000. Before super storm Sandy hit the east coast the applications for unemployment were around 360,000. Two weeks ago the storm caused massive amounts of people from New York and New Jersey to seek unemployment aid. The storm will continue to distort the claims data for a while.
Consumer sentiment fell from the preliminary reading earlier this month likely due to increased worry over the fiscal cliff. A recent report from Washington states that if Congress increases taxes on the middle class, these consumers will spend around $200 billion less in the coming year, slowing the growth of GDP.
This week’s data includes consumer confidence which is out tomorrow. Confidence was at the year’s high last month. New home sales were also up; September’s reading was the best annual rate since 2010. New home sales data for October will be out on Wednesday. Thursday’s data includes jobless claims and pending home sales. Lastly on Friday there is personal income and consumer spending.
Senior Loan Officer
1st Advantage Mortgage, a Draper and Kramer company