A
flurry of economic data is set to be released in the coming days, while the Federal Reserve prepares to make a decision on interest rates. The trade deal deadline with China looms on August 1. Key points include:
New consumer confidence, pending home sales, and employment reports are due out this week, along with updated inflation data.
The Fed's July 29-30 meeting may provide clarity on its interest rate strategy for the second half of 2025.
Tariff negotiations will intensify as President Trump's August 1 trade deal deadline approaches.
This week is crucial for forecasting the real estate market's trajectory over the next few months. Alongside the Fed's meeting, a deluge of data releases will shed light on the economy's overall performance. Tariff talks are expected to be particularly heated as the August 1 trade deal deadline draws near.
Some key points to consider include:
Will the Fed lower interest rates? The expectation is that the Fed will keep short-term interest rates unchanged on July 30, with Chairman Powell keeping his cards close to his vest regarding rate cuts. The Fed is waiting for clearer data on inflation and labor market trends.
Trade deals and negotiations: The US has announced a framework trade deal with the European Union, while talks continue with China as the deadline approaches. A going rate beyond 20% could trigger a downturn on Wall Street.
Economic data worth watching includes:
The next consumer confidence report due out on July 29, which will provide insight into buyers' decision-making during the slow spring market.
Reports on gross domestic product, jobless claims, and personal income and spending are also expected this week.
New data on construction spending and auto sales will be released.
Forecasters expect healthy spending and GDP numbers, with a slight softening in employment. The Personal Consumption Expenditures (PCE) Index is closely watched by the Fed for inflation signals.
Pending home sales data may provide clarity amid the slow summer market. If pending sales have continued to rise, it could lead to a rebound in home sales for August and September. However, if they've slowed, it could suggest that contract cancellations are having an impact.
A big week for earnings reports: RE/MAX, Compass, and eXp will disclose their second-quarter earnings, providing insight into how they weathered the slow spring season.
