Durable Goods Orders
Tuesday has two relevant reports scheduled, starting with Durable Goods Orders for September at 8:30 AM ET. It gives us a measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. Analysts are currently calling for a 0.6% rise in new orders for products such as airplanes, appliances and electronics. If we see a larger increase in orders, mortgage rates will probably rise as bond prices fall. On the other hand, a decline should be good news for the bond market and mortgage rates. This data can be quite volatile from month to month and is difficult to forecast. Therefore, a small variance in orders either way, likely will have little effect on Tuesday's bond trading or mortgage pricing.