Durable Goods Orders
August's Durable Goods Orders will start this week’s activities at 8:30 AM ET tomorrow morning. It gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. Big-ticket products are items that are expected to last three or more years such as airplanes, electronics and appliances. Analysts are expecting to see a 0.6% rise in new orders, pointing towards moderate strength in the manufacturing sector. A sizable decline should help boost bond prices and cause mortgage rates to drop because signs of economic weakness make longer-term securities more appealing to investors. However, a much larger than expected increase in new orders will likely help push mortgage rates higher. It is worth noting that this data is known to be quite volatile from month-to-month, so a small variance from forecasts may not affect mortgage pricing like it would in other reports.