Economic Data Coming Up Roses But Will Fed Taper?

December 6, 2013

Rosy Economic Data Fuels Speculation Over Fed Tapering in December

On Thursday, the Department of Labor released its weekly claims report. According to the data,”in the week ending Nov. 30, the advance figure for seasonally adjusted initial claims was 298,000, a decrease of 23,000 from the previous week’s revised figure of 321,000.” A better than expected report. The Wall Street Journal said that economists surveyed by Dow Jones had forecast 320,000 new claims.

With a better than expected payroll report on Wednesday from ADP, investors and analysts are wondering once again if the Fed will consider tapering in December. ADP reported a 215,000 point rise in private payrolls.

Bloomberg reported in a story that the rosier economic data leads financial experts to think tapering will happen sooner than later.

“The numbers today pave the way for the Fed” to cut stimulus, Matthew Kaufler, a portfolio manager at Federated Investors Inc. in Rochester, New York, is quoted as saying by Bloomberg.

CRE Default Rates Dropping

According to an article on GlobeSt.com, reports from the Mortgage Bankers Association and Chandan Economics each “add to the growing picture of health that is commercial real estate finance.” The article said that both reports show “delinquency rates dropping across most categories of loan types.”

Add to that another story on GlobeSt.com about the drop in the CMBS delinquency rate over the past year.

“Trepp reported Tuesday that the late-pay rate for CMBS has declined 268 basis points since reaching an all-time high in the summer of 2012, with November marking the sixth consecutive month of improvement,” the website reported.

For Liberty SBF’s CMBS rates for the week of December 6, click here.