This week brings us the release of six monthly and quarterly economic reports for the markets to digest, along with a periodic Fed update. The data includes the typical new month releases, two of which are highly important to the financial and mortgage markets. Tomorrow is the only day without at least one item scheduled, but news today that the U.S. initiated military action in Iran again has oil prices up. This may lead to an increase in rates tomorrow morning if they remain up overnight.

August's manufacturing index from the Institute for Supply Management (ISM) will start this week's activities at 10:00 AM ET Tuesday morning. This is one of the highly important reports we will get this week. It measures manufacturer sentiment and is expected to have slipped from July's 55.6. A reading above 50 is considered a sign of strength in the manufacturing sector it means that more surveyed manufacturers felt business improved this month than those who felt it had weakened. A lower reading than the predicted 55.2 would be considered good news for bonds and likely lead to an improvement in Tuesday’s mortgage rates.

Next up is August's ADP Employment report before the markets open Wednesday morning. It tracks changes in private-sector jobs, using the company's payroll processing clients as a base, but is not reliable in predicting the more influential governmental version that will be posted Friday. Analysts are expecting to see 45,000 new private-sector jobs were added to the economy last month. A number that is higher than expected would be negative news for mortgage rates while a much smaller increase would be favorable.

July's Factory Orders data will be posted at 10:00 AM ET Wednesday. This is another manufacturing sector report and is similar to last week's Durable Goods Orders report, but doesn’t carry nearly as much importance as some of this week’s other reports. Forecasts show a 0.5% rise in orders at U.S. factories for both durable and non-durable goods, hinting at gains in the manufacturing sector. A decline would be favorable for bonds. However, this data likely won't cause much movement in rates unless its results vary greatly from forecasts since the big-ticket products portion of the report was released already.

Wednesday also has an afternoon event that we will be watching. The Federal Reserve will release their Beige Book report at 2:00 PM ET. This release details current economic conditions in the U.S. by Federal Reserve region through the eyes of their business contacts. It is believed to be a key source of data when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises or changes from the previous release, we may see movement in the markets and mortgage pricing as analysts adjust their theories about what the Fed will do regarding a potential rate hike at their September 15-16 FOMC meeting. Good news for mortgage rates would be weaker activity with signs of easing inflation that lowers the possibility of the Fed raising key short-term interest rates in the immediate future.

Thursday has three pieces of data scheduled for release that may have an impact on rates. In addition to the weekly unemployment update, revised 2nd Quarter Productivity numbers will also be posted at 8:30 AM ET. Strong levels of productivity in the workplace allow the economy to expand without inflation concerns. It is expected to show a 1.4% increase in productivity, unchanged from the initial estimate, while the labor costs reading increase held at 1.3%. Good news for the bond market and mortgage rates would be a solid upward revision in productivity and lower labor costs, but this report doesn't usually cause a noticeable move in rates.

Thursday's third release will come from the Institute for Supply Management (ISM), who will release their non-manufacturing index (aka service index) at 10:00 AM ET. This is the sister report of Tuesday's ISM manufacturing index with this version tracking business executive opinions on conditions in the service sector rather than manufacturing. It is expected to show a reading of 54.4 up from July's 54.1. A reading above 50.0 means more surveyed executives felt business improved during the month than those who said it worsened. Good news for mortgage rates would be a much weaker than predicted reading.

August's Employment report is set to be released at 8:30 AM ET Friday, which will give us the U.S. unemployment rate, number of new jobs added or lost and average hourly earnings for this month. The ideal scenario for the bond market and mortgage rates is rising unemployment, a drop in the number of new payrolls and earnings to fall slightly. Analysts are expecting to see that the unemployment rate inched up from July's 4.1% to 4.2% and that 45,000 jobs were added during the month. The average earnings reading is forecasted to have risen 0.2% from July. Weaker than expected readings would be another warning sign the employment sector is in worse shape than thought and would be very good news for bonds and mortgage rates. However, if we get stronger than expected numbers, the odds of a Fed rate hike next month go up and mortgage rates could move higher Friday.

Overall, Friday is the most important day of the week due to the influence of the Employment report, but Tuesday's ISM index can also cause a noticeable change in rates. No day stands out as a good candidate for a calmest day. There is a high probability of it being a volatile week for the markets. Therefore, please proceed cautiously if still floating an interest rate and closing in the near future.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.