1. In the thick of the housing struggle
The home construction industry may be in a state of siege, but some optimists believe the worst will soon be over. A fresh test comes Tuesday, with housing starts for October. Analysts are looking for a slight drop, after the shocking 10.2 percent plunge a month earlier, to a 14-year low. Economist Paul Kasriel remains cautious. “Defaults and foreclosures still are rising, and we are right in the teeth of adjustable-rate mortgages resetting to higher payments,” said Kasriel, of Northern Trust Co. “A recent estimate showed that a lender loses an average of $50,000 on each foreclosure.”
2. Fed meeting minutes
With three weeks remaining before Federal Reserve policymakers gather, it’s considered a tossup whether they will again reduce interest rates. On Wednesday, the Fed provides minutes of its last meeting. Some observers consider it inevitable that the central bank will ease once more. But economist Robert Dederick of RGD Economics says, “Members of the Fed don’t want to create a perception that the markets can dictate policy.” He says it will be critical to monitor data between now and Dec. 11.
3. No thanks for food costs
As Americans prepare to join in celebrating Thanksgiving on Thursday, food prices are up about 4.4 percent, year over year. “Dairy prices are up 15 percent from last year, and that’s fairly noticeable because a lot of people buy milk every week. Eggs are up 45 percent,” says economist Corinne Alexander of Purdue University.
4. Holiday gas hike lurks
A downer for the celebration: Prices at the gas pump keep rising, recently pushing near $3.19 a gallon at many locations. Oil analysts say they are set to shatter the old record of $3.227, hit just before Memorial Day.
5. Price of gold retreats
The holiday shopping season kicks off Friday, and those contemplating the purchase of gold jewelry well may blanch at the thought. An ounce of gold recently topped $845, the highest level since 1980. But it quickly fell by nearly $60 and closed last week at $787.
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wsluis@tribune.com
