Gross Domestic Product (GDP)
Tomorrow has a couple of high-profile economic releases that we will be watching, starting with the initial quarterly Gross Domestic Product (GDP) reading at 8:30 AM ET. Tomorrow's release is the first of three we will get for the 4th quarter. This data is so important because it is considered to be the best measurement of economic activity. The GDP itself is the total sum of all goods and services produced in the United States and its’ results usually have a major impact on the financial markets, leading to noticeable changes in mortgage rates. It is expected to show the economy grew at an annual rate of 5.6%. A much weaker reading would be great news for the bond and mortgage markets. However, a larger than expected increase, indicating the economy was stronger than thought, will probably fuel bond selling and lead to higher rates tomorrow.