August 23rd, 2009 10:48 PM by Eric Fang
Tuesday.The release of August's Consumer Confidence Index (CCI).This index measures consumer sentiment about their own financial situations, giving us a measurement of willingness to spend. That is important because consumer spending makes up two thirds of the U.S. economy. It is expected to show a reading of 48.0 , which would be an increase from July's 46.6.Any weakness will drive the rates lower.
Wednesday.July's Durable Goods Orders & July's New Home Sales data.The Durable Goods Orders data tracks orders at U.S. factories for big-ticket items, or products that are expected to last three or more years.
Also, there is a 5-year Note Auction on Wednesday.
Thursday.Release of 2nd Quarter GDP & Auction of 7-year Note.
Overall, we will likely see the most activity in rates Tuesday morning, but Wednesday and Thursday are also important. If we manage to get weaker than expected results in the key reports and the auctions go well, we should see mortgage rates close the week lower than Monday's opening levels. But stronger than expected results in the economic reports and disappointing results in the Treasury sales will most likely lead to rates moving higher this week.