Consumer Confidence Surveys to Dominate Economic Data This Week
New and Existing Home Sales Rise; Consumer Confidence Surveys Out this Week
April 26, 2010 - Mortgage rates moved little last week even as economic data released was largely better than expected. News of Goldman Sachs' legal woes with the SEC trumped the overall upbeat economic releases. Market participants are expected to follow the story closely in the coming weeks and months.
Optimism for a more broad-based recovery seems to be growing as the economy begins to regain footing. Two sectors that continue to lag are the housing and employment markets. New and existing home sales moved higher than expected, which is likely the product of this week's expiring tax credit. Many still expect housing to slowly strengthen through the second half of the year, even without government support in the form of tax credits or mortgage backed security purchases.
This week is packed with important releases for financial markets. We'll get a peek at first quarter GDP numbers and two important consumer confidence surveys. The Fed will also meet this week and hopefully give some insight on the future direction of interest rates. While rates are unlikely to be changed, analysts will comb the announcement looking for clues as to when rates could be changed.