Trump signs bill to end shutdown, but mortgage market faces weeks of backlog

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“All of that economic data released will be permanently impaired, leaving our policymakers at the Fed flying blind at a critical period,” White House press secretary Karoline Leavitt said.

Some economists suggested that the lack of official data could sway the Fed to hold rates steady, though resumed releases may shift market expectations.

 “That depends on whether government data for GDP growth, inflation, and employment are out by the December meeting,” Shelly Antoniewicz, chief economist with the Investment Company Institute (ICI), told Mortgage Professional America.

“Without this data, I don’t think it would be a surprise if the Fed holds in December. Powell has already telegraphed that intention to the market. If the data starts coming out again, market expectations for a cut could move dramatically depending on what it shows about the state of the economy.”

Consumer confidence restores

The end of the shutdown would likely restore confidence among Americans who have been hesitant to make large purchases. The uncertainty and fear of lost or delayed income would subside, encouraging buyers to proceed with home and car purchases.