A higher percent- age indicates a stronger manufacturing sector and an expanding economy which can be inflationary. Mortgage rates worsen. The consumer price index is an indicator of the general level of prices. Components include energy, food and beverages, housing, apparel, transportation, medical care, and entertainment. When the consumer price index goes up, it is a sign of an inflationary environment.
Consumers have to pay more for the same amount of goods and services.
Mortgage rates worsen. Durable goods include those manufactured items with a normal life expectancy of three years or longer. An increase in the amount of durable goods orders may indicate an expansion in the economy and, if inflationary, the Federal Reserve could choose to tighten money by raising interest rates. Mortgage rates worsen. Market participants look to U.S. Government economic releases as an indication of the economy's strength and general direction.