Surprises in the New Year

We get the final revision to the third-quarter GDP report on Wednesday. Gross domestic product is the measure of the nation's total economic output. The first estimate of GDP from July through September showed growth of 3.7 percent. Then came the first revision, based on updated data, and growth was bumped up to 3.9 percent. Wednesday brings the final revision. Economists surveyed by Briefing.com forecast that the number will stand at 3.9 percent.
If they are wrong, and the final estimate of GDP growth is revised upward again, to above 4 percent, you can expect a modest bump in long-term rates. If GDP is revised downward, which I doubt will happen, mortgage rates probably won't drop much, if at all.

All in all, economists don't expect economic reports to spring any surprises on us, and that's a recipe for steady interest rates. Of course, if you reread that last sentence, you will want to reach through your computer monitor and slap me and remind me that no one expects surprises. That's why they're surprises.

Another report of note comes Thursday, when the Census releases its estimate of new home sales in November. The economists surveyed at Briefing.com expect a 3 percent drop from the previous month. If they're right, there's no reason to panic -- October's new home sales were the third-strongest in history, so a modest decrease is to be expected.

http://www.geocities.com/q41
courtesy of bankrate.om