What’s interesting about Durable Goods Orders, yes I guess I just said that but seriously it’s a thing.

Durable Goods are items with a lifespan of over three years—think of dishwashers, ovens, stoves, and cars. Interestingly, there’s been a shift in demand since the pandemic, with many people investing in home remodels and repairs. The trend is clear in the graph below.

Part of the inflationary pressure we’re seeing is due to demand outpacing supply, shown by the red line in the chart.

In September, durable Goods Orders declined by 0.8%, largely because of slower auto sales. However, when excluding autos, core durable goods orders actually rose by 0.5%.

In short, despite the constant stream of negative news, the economy is still moving forward.

Next week its all about Jobs reports and our infamous Personal Consumption Expenditures (PCE).

Mortgage Rates are starting to take back some of the losses over the last week. We feel good about the direction and anticipate lower rates moving forward.