Durable Goods and Pending Home Sales

February 27th, 2017

DEFINITION of 'Durable Goods Orders'

An economic indicator released monthly by the Bureau of Census that reflects new orders placed with domestic manufacturers for delivery of factory hard goods (durable goods) in the near term or future. Durable goods orders come in two releases per month: the advance report on durable goods and the manufacturers' shipments, inventories and orders.

BREAKING DOWN 'Durable Goods Orders'

Because investment prices react to economic growth, it is important for investors to be able to recognize trends in the growth of the economy. Orders for factory hard goods can provide information on how busy factories may be in the future. Orders placed in current months may provide work in factories for many months to come as they work to fill the orders.

Read more: Durable Goods Orders http://www.investopedia.com/terms/d/durable-goods-orders.asp#ixzz4ZdrIM0EV

DEFINITION of 'Pending Home Sales Index - PHSI'

An index created by the National Association of Realtors (NAR) that tracks homes sales in which a contract is signed but the sale has not yet closed. The pending home sales index is a leading indicator of future existing home sales as it typically takes four to six weeks to close a sale after a contract has been signed.

http://www.investopedia.com/terms/p/pending-home-sales-index.asp#ixzz4ZdsjRTRh

BREAKING DOWN 'Pending Home Sales Index - PHSI'

Understanding demand for housing can help investors keep a finger on the pulse of the economy in general. To purchase a house, people have to be financially capable of maintaining the home and the mortgage payments. As housing demand increases, it can be inferred that people are either making more money, or feeling more confident in their ability to make mortgage payments.

http://www.investopedia.com/terms/p/pending-home-sales-index.asp#ixzz4ZdstDhqw

Today's Agenda

Monday, February 27, 2017ReportForEstimateActualPriorImpact
8:30 AMDurable Goods OrdersJan1.80%1.8%-0.80%Moderate
10:00 AMPending Home SalseJan0.90% 1.60%Moderate

 

Tomorrow's Agenda

Tuesday, February 28, 2017ReportForEstimateActualPriorImpact
8:30 AMGross Domestic Product (GDP)Q42.10% 1.90%High
8:30 AMGDP Chain DeflatorQ42.10% 2.10%High
9:45 AMChicago PMIFeb53 50.3High
10:00 AMConsumer ConfidenceFeb111.5 111.8Moderate

What Is Going On With Interest Rates?  #wigowir


Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news.

8:32 AM January Durable Orders rise 1.8%, inline with estimates while December was revised lower to -0.8% from -0.4%.

8:29 AM Investors will be closely watching President Trump's address to a joint session of Congress Tuesday evening for any clues on his "phenomenal" tax announcement that he said would be coming.

8:25 AM There are no Treasury Note or Bond auctions this week.

8:23 AM WTI oil $54.50/barrel, $0.51.

8:19 AM S&P futures slightly lower as the market looks for a fresh catalyst after the Dow posted its 11th straight record high close on Friday (20,821).

8:18 AM MBS open modestly lower.

8:17 AM This week's economic data includes today's Durable Orders (8:30) and Pending Home Sales (10), along with GDP, manufacturing, Consumer Confidence, Personal Income and Spending, Core PCE.

8:03 AM MBS look to open the economic data filled week near unchanged with a slightly lower bias after last week's move to the upside.

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

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