Housing Data & Durable Goods Show Strong Marks, Keep Eye on FOMC Minutes

Economic Data Summary - Mortgage applications showed a composite increase of 2.8%, with refinances up 7.1% and purchases down 2.7% [1][2] - The 30-year mortgage rate decreased slightly to 6.21% from the previous week [2] - Durable goods orders fell by 1.4%, which was better than the expected decline of 2.3% [2][3] - Core capital goods orders increased by 6%, exceeding expectations of 2% [3] Housing Market Insights - Housing starts were reported at 1.44 million, surpassing the expected 1.325 million [4] - Building permits also exceeded expectations, reported at 1.448 million compared to the anticipated 1.345 million [4] - The data indicates a surprising strength in the housing market, particularly in refinances and housing starts [4] Federal Reserve Context - The Federal Reserve's dual mandate focuses on full employment and inflation, with current unemployment at 4.3% and year-over-year inflation at 2.4% [6][7] - Upcoming personal income and outlays data will provide insights into PCE, which is closely monitored by the Fed [7] - The Fed minutes are expected to provide additional details on past discussions, although they may not significantly impact the market [6][8]