Durable Goods Orders
There were two pieces of economic data posted early this morning, one of which is considered to be pretty important to the markets. That was June's Durable Goods Orders at 8:30 AM. The Commerce Department announced a jump of 6.5% in new orders for big-ticket products such as airplanes, appliances and electronics. This was much larger than the 2.9% increase that was expected, making the headline number appear to be bad news for bonds and mortgage rates. While the spike in new orders is not favorable by any means, a secondary reading that excludes more costly and volatile airplane and transportation-related orders paints a different picture. The ex-transportation reading came in at up 0.2% when forecasts were calling for a 0.5% rise. In other words, the main headline number does not look good for mortgage pricing, but the more stable secondary reading does.