Durable Goods Orders
August's Durable Goods Orders will start this week's activities at 8:30 AM ET Tuesday 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% decline in new orders, pointing towards weakness in the manufacturing sector. A larger decline should help boost bond prices and cause mortgage rates to drop because signs of economic weakness eases inflation fears and makes longer-term securities more appealing to investors. However, an unexpected 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.