It seems for the moment that stability is returning to the markets:
Now that Greece has verbally accepted the terms under which additional money will be lent to the country.
- There still remains the possibility that plan could go up in smoke as there is staunch opposition to the austerity plan by many people in Greece.
- For now it appears that Greece will not be leaving the Eurozone and that money to save the failing economy will be forthcoming shortly.
The general feeling by many professionals in the industry is that the mid-summer housing slowdown may be taking hold.
- It is typical as we hit mid-July to see housing activity across the country decline.
- For some areas of the country school begins at the beginning of August
- And in some areas it is becoming peak vacation time.
The good news on the horizon
- Many experts are predicting that even though interest rates have risen in recent weeks, and Janet Yellen keeps saying that a Fed rate increase is likely coming in the fall
- Home purchasing is expected to jump in the 3rd and 4th quarters
- There is a lot of pent up demand for housing and with the improving labor market experts believe that the desirability to own real estate will continue to rebound.
First time jobless claims continue to remain below the psychological critical number of 300,000.
- It is considered that any number below this artificial threshold is indicative of a strong labor market.
- Last week claims dropped from a revised 296K down to 281K.
- The prior week’s jump is attributed in part to the automobile industry which contributed significant numbers to the report as auto manufacturers are completing their summer factory retooling.
Overall the economy appears to be stable.
- It seems that when reviewing economic reports from month-to-month, many of them move back and forth from positive to mediocre.
- As we have become used to doing…we must just continue to monitor them and look for trends however overall improvement exists.
With the combination of the typical mid-summer investor slowdown along with very few economic reports on tap, the stock markets are likely to be fairly stable next week.
- Of course the wildcard can be anything that happened internationally with Greece or China.
- Those two countries with their economic challenges always have the ability to impact investor behavior here in the United States.
This week’s potential market moving reports:
- Wednesday July 22nd – MBA Applications, Existing Home Sales & FHFA House Price Index
- Thursday July 23rd – First Time Jobless Claims
- Friday July 24th – New Home Sales